Follow on Google NewsIn this weekly analysis of Bank Nifty, the closing level was 39395, which is 203 points lower than the previous week's close. Looking at the weekly chart, we observe that the candle formed this week is an inside candle, meaning it does not break or touch the low of the previous week's candle.Over the last three weeks, Bank Nifty has been closing below the previous week's closing. The previous support level of Bank Nifty at 39854 is now acting as resistance. Specifically, the range of 39854 to 40000 is the resistance level for Bank Nifty on the weekly chart. If the market closes above 40000 on the weekly chart, we can expect to see upside momentum in the market. When Bank Nifty closes above the level of 40000, the market will trade in the range of 40000 to 40927.Bank Nifty follows the trend line in the weekly chartBank Nifty follows the trend line in the weekly chart. We can expect upside momentum only when the trendline is broken, and Bank Nifty starts trading above it. Before breaking the trendline, Bank Nifty consolidates between the range of 39393 to 40927. After consolidation, if it breaks the trendline and closes above the level of 41000, we can expect momentum in Bank Nifty, with the potential to reach 43000. However, it's important to keep in mind that a breakout above 41000 doesn't necessarily guarantee a position. Previous trends in the daily chart show that when Bank Nifty breaks resistance and closes above it, it tends to come back down and close below the resistance, leading to a downtrend. Therefore, it's best to wait for the next trading session to see if the breakout sustains before making a position.If Bank Nifty closes below the previous week's low at the level of 38643 and makes a weekly close below that level, it will take support at the level of 37312.Moving Average 22 and Moving Average 55Using the Moving Average 22 (MA 22) on the weekly chart, we can see that after breaking this level, Bank Nifty continues to trade below it, with the MA 22 acting as resistance at the level of 41666. When Bank Nifty trades below the MA 22, which acts as resistance, we can use the Moving Average 55 (MA 55) to find support, which is at the level of 38670.
