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Bank Nifty Prediction for 07 August 2024. Weekly Expiry Analysis
Bank Nifty is below its most important, strongest, and psychological level of 50,000 and currently trading below its 100 DEMA, and if sustains below the 100 DEMA on Wednesday, then we can say that it will enter the Bear Market. But it is likely that the Bank Nifty will trade in green on tomorrow, taking the weekly expiry in the account, and the market is already corrected more than 6.5% from its all time high.
Nifty Bank is weak, in fact, All the Indices are weak, as I expected in the previous Analysis, that it will likely trade higher for the short term, and then fall again making a new low, and that’s what happened on Tuesday.
After opening higher from the previous close, Bank Nifty started falling from the starting and continued to trade with a downward momentum, making lower lows and lower highs – ending the day with a loss of 343.48 points or 0.69 percent.
As of Now, Bank Nifty is trading at 6.67% lower than its all-time high and has fallen more than 5% in the last 30 days. This is the 3rd straight session for Bank Nifty trading in red falling below the crucial support level of 50,000 and it’s likely to continue to fall further with quite strong near-term support at the 49,450 level as the U.S. recession fear rises.
Looking at the Bank Nifty Stocks,
Top Gainers: AU Small Finance Bank
Top Losers: SBI, HDFC, Federal Bank, Axis Bank, IndusInd Bank
Also Read: Top 10 Mutual Fund Companies in India, with their Total AUM and Top Performing Schemes.
Bank Nifty Prediction for 07 August 2024
On the Daily chart, we can see that, Bank Nifty started falling on the 4th of July after making a Bearish Belt Hold Candlestick as it opened at an all-time high of 53,357.70 and till then it fell more than 6.5%, breaking the one of the most critical support level fo 50,000 as the global market tumbles.
On the Technical side, Bank Nifty is below its 100 DEMA on the daily chart, indicating that the market has entered the bearish zone and probably will last longer because of the rising global tension, slowing the U.S. Economy, and the Bank of Japan Interest Rate Increment.
But the Good Part is that the Nikkei 225 rose more than 10% on Tuesday, surprising the world after seeing an intense selling of more than 12% in a single day on the 6th of August 2024.
Technical Indicator,
On the Daily chart, the RSI is falling and is currently near the oversold zone, the MACD has fallen sharply, and the PCR is falling, currently at 0.53, the candles are below the lower band of the Bollinger Band, and the worst part is that the Bank Nifty is below is 100 DEMA, and it sustain below the 100 DEMA on Wednesday, it will confirm the Bear Market.
And, if You Don’t Know, How to trade using “TECHNICAL INDICATORS”, then read this article.
What to Expect from Bank Nifty on 07 August 2024
For Tomorrow, Bank Nifty is likely to trade in the green, taking the Weekly expiry in the account, expecting a small recovery on Wednesday as the index is below the lower band of the Bollinger Band, and we might see a bullish market on Wednesday with potential resistance at the 50,000 and the 50,500 mark.
But for the long term, it’s Bearish, and the market may continue to trade lower in the coming days.
On the daily timeframe, Bank Nifty has long-term rising trendline support at the 49,500 level, and possibly Bank Nifty will take a rest at this support level for further movement in either direction.
As the Index is below its 100 DEMA, it’s unlikely that it will turn bullish so early, as it has to take multiple supports at the 100 DEMA to confirm any bullish reversal, but it will try to stay above the level of 50,000 as the market has corrected enough to support the next bull run.
But if Bank Nifty falls below the trendline support as shown in the first image, then we can see Bank Nifty at 49,000 and then 48,000 (around the 200 DEMA) in the coming sessions.
“So here are the trading levels for Tomorrow – 49,000 – 50,200“
Bank Nifty Put and Call Open Interest Data
| Put OI (Open Interest) | Call OI (Open Interest) |
|---|---|
| 49,000 (23.35L) | 51,000 (41.58L) |
| 50,000 (18.50L) | 50,500 (35.96L) |
| 49,500 (16.12L) | 50,00 (21.16L) |
Bank Nifty Support and Resistance Level for 07 August 2024
| Bank Nifty Support Levels | Bank Nifty Resistance Levels |
|---|---|
| 49,500 | 50,000 |
| 49,000 | 50,500 |
| 48,500 | 51,000 |
Note:- For the Most Accurate Data you can revisit this Page after 11:00 AM (during Trading hours), so we can update the Trade Setup after analyzing the Market.
Happy Trading 🙂
