Following is the Bank Nifty Daily Chart Analysis for 13th December 2023.
Bank Nifty has done a major rally in the last 2 weeks, and its holding up above all moving averages, trying to consolidate at 47K level. Upside target of 48K is still on. Momentum has been falling, but any reversal in momentum can rapidly take the price to 48K.
Till Bank Nifty closes below 10 day Simple Moving Average, traders should not take any major positions on the short side, or using Bank Nifty Puts. 46K level should act as a strong support, because 46,300 was the previous double top, which was recently broken, so its possible that Bank Nifty may go there to test support level.
Nifty50 index had a strong positive week. Monday was a market holiday in India, and all the remaining four days from Tuesday to Friday showed strong positive gains. This was one of the most positive November months for Nifty in recent years. The monthly options expiry on the last day, 30th November, may have also played a role in the upmove, because many options sellers never expected Nifty to cross 20K level in November, because it looked far away from the lows of October around 18,850.
Our analysis has constantly shown that we need to stay long above 19,000 level in Nifty for targets 19,500 and 20,000 and that has played out once more. Our target of Nifty index was 20,000 for the current rally on the daily charts, and Nifty has already crossed 20,200. On the weekly charts, Nifty has much higher targets of 21,800, which may come next year in 2024.
Bank Nifty index also started moving up this week after several weeks of under performance. Our Bank Nifty targets in the near term are currently 45K and 45,500. On the weekly charts, Bank Nifty has longer term targets of 50K and 55K, which may come in 2024. Thanks.