Jan 09, 2024: Two things will make tomorrow’s trading day critical. A) The overall markets will suffer if Bank Nifty shows more weakness, B) It will also reinforce the Lower High (LH) and Lower Low (LL) pattern of Bank Nifty, which may trigger more intermediate correction, which should be beneficial for the market anyway.
Let’s first take a look at Bank Nifty levels:
On the downside, Bank NIfty needs to protect the level of 46915, or else it may confirm the looming formation of a Lower Low. The overall structure is an inverse Head & Shoulder pattern so an intermediate correction is not ruled out with a very low probability of Bank Nifty crossing 48381 in the near term. Level of 46290 has to be defended at all costs.
Now let’s take a look at Nifty 50 levels:
Today, Nifty opened with a Gap up but failed to climb to surpass the intermediate high of yesterday, which was 21800. I strongly think that for Nifty, it will be a ranging day again tomorrow, but any close below 21497 will target a vital level of 21330 and that will lead to an intermediate correction.