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Bank Nifty Prediction for Monday, 7th October 2024
Bank Nifty has seen a significant decline of over 3000 points in the past five sessions, currently down 5.51% from its peak, primarily due to Middle East tensions and heavy selling by FIIs. However, a potential bullish reversal may occur with a Spinning Bottom formation, anticipating a short-term upward movement on 7 October 2024. Support is at 51,000, with resistance at 52,000.
Bank Nifty also traded the same way as Nifty50 – trading with a loss of more than 3000 points in the last 5 trading sessions, after a Bearish Belt Hold Candlestick formation on the top of the chart.
Currently Bank Nifty is down by 5.51% from its all-time high of 54,467.35 led by the rising Middle East tensions, FIIs’ aggressive selling in both the Cash and Futures Segment, and the SEBI circular about capping the F&O segment which will take effect from the November 20, 2024.
In this correction, Private sector banks were hit hard and Public Sector Banks remained intact with some minor dips in the smaller banks where The Bank Nifty Index heavyweights, HDFC Bank fell by 7.31% and the ICICI Bank fell by more than 6% in the last 5 trading sessions – which combined weightage in the Index is more than 50% as of September 2024.
Looking at the Bank Nifty Stocks,
Top Gainers:
Top Losers:
Also Read: 7 Best Solar Energy Stocks in India for 2024. CAGR Growth of 30%
Bank Nifty Prediction for 7 October 2024
Bank Nifty is currently looking for a reversal as it forms a Spinning Bottom Candlestick at the Support level – which is a Bullish reversal pattern, that might take Bank Nifty higher on Monday, breaking its 5-day losing streak.
It has also trending support at the lower level where the Spinning Bottom formed which might take Bank Nifty higher on Monday, as well as Technical Indicators like RSI and PCR indicate an oversold condition which means a Bullish Reversal is possible in the coming days for the short term and the market momentum has turned Bearish for the long Term.
Currently, the Index is trading below all the short-term simple and exponential moving averages which indicates that the current trend is so strong that outnumbers the Buyers from the market and shifts the whole market trend to Bearish and likely this will stay long.
Also, the FIIs selling in the cash and the Futures Segment suggests a long-term bearish market but as I mentioned in the Nifty Prediction article, that the market has now entered the oversold zone, where a reversal is anticipated for the short term, and we might see the same reversal in the Bank Nifty too – with resistance at the 52,000 mark.
What to Expect from Bank Nifty on 7 October 2024
Bank Nifty is Bearish and the market view is totally Negative, but still we see a reversal in the market on Monday, 7th October as the Index has entered the oversold zone which indicates a possible reversal in the market for the short-term.
So, for Monday, 7th October 2024, Bank Nifty is likely to open positive above the 51,500 level and it might trade higher towards the 52,000 level as it is the current resistance for the Index with a call OI of 18.51Lakh, compared to the Put OI of 10.18Lakh.
Support for Bank Nifty stands at the 51,500 level followed by 51,000 and 50,500 levels whereas on the higher side Bank Nifty resistance is at the 52,000 level followed by 52,200 and 52,500 levels.
“So here are the trading levels for Tomorrow – 51,000 – 52,500“
Bank Nifty Support and Resistance Level for 7 October 2024
| Bank Nifty Support Levels | Bank Nifty Resistance Levels |
|---|---|
| 51,500 | 52,000 |
| 51,000 | 52,200 |
| 50,500 | 52,500 |
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 🙂
