Bank Nifty is currently trading at the swing extreme with 10-day ADX holding above 40 levels which indicates extreme positive sentiment with mean reversion odds If ADX value likely to start sliding below 40.
Yesterday bank nifty had one of the lowest range of 281 points. And the last couple of days ATR started falling from 1000+ levels to 530 levels.
Bank Nifty 30min Charts
Bank Nifty 30min chart is in buy mode from 9th Oct onwards. Its been 25 trading days since the last buy signal. Historically 25 trading days of holding up the signal is an outlier and the last two trading sessions price has been consolidating in a very narrow range with immediate quickflip supports around 30957 levels. Any Breakdown below 30957 levels could possibly bring a test toward 30500 & 30400 levels.
Bank Nifty Market Profile
There are two key references to watch out in Bank Nifty. 14th November – poor structure levels and 15th November Bank Nifty – Failed Auction levels are the immediate point of price mean reversion. which brings a possible price reversion down below 30500 levels.
Two day balancing is seen and the price is still struggling to take out the previous week high and last Friday high. Balance rules apply in this case in the upcoming sessions.
The overall trading sentiment is at the extreme. Any break below 30950 levels could bring a possible test towards 30500 and 30400 levels in the short term.