Bank Nifty 08/01/25: Key Levels to Watch

Bank Nifty is currently at a critical support zone, and its next move will define the market’s short-term direction. Here’s a detailed breakdown of the key levels and potential scenarios:

Key Observations:

1. Current Support Zone:
   The index is testing a crucial support level. If this holds, we might witness a bullish renouncement and a recovery toward resistance levels.

2. Bearish Continuation:
   If the support is broken decisively, the bearish momentum could extend further, targeting the next key level at S2: 49,450.

3. Bullish Invalidations:
   A confirmed breakdown below S2 (49,450) with strong volume will invalidate any short-term bullish outlook and signal a bearish trend continuation.

Key Levels to Watch:

• Support Levels:

  • S1: 50,183

  • S2: 49,450

  • Below S2 it will continue falling till 49060 and 2023 high level at 48,636.45

• Resistance Levels:

  • R1: 50,599.80

  • R2: 51,120

  • R3: 51,545

Trading Plan:

• For Bulls:
  Watch for a bounce off the current support level with strong momentum. If the price reclaims R1 (50,599.80), it may rally further to test R2 (51,120) and R3 (51,545).

• For Bears:
  A clean break below the current support or S2 (49,450) will provide a potential shorting opportunity. Look for confirmation with a strong volume to avoid false breakdowns.

Whether the market breaks down or renounces from support, these key levels will guide your next steps, which shall be taken with patience.

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