BANKNIFTY at All time high 48636, what will next? it’s good or bad?


BANNKNIFTY is at its all-time high. Banknifty hit a high of 48636 on 28 December 2023. No one expected this, but the global market being positive, fall in crude oil, monetary policy of RBI etc. supported Banknifty a lot.

How far can Banknifty go?


Whenever a stock is at an all-time high, resistance levels can be found on the day time frame with the help of trend based Fibonacci Extension or Advance Fibonacci. With the help of Fibonacci Extension, two main resistances are being found – the first resistance of 1.6 is 49033 and the second resistance of 2.6 is 50327. If Banknifty goes further higher then it can stop at 49033.

Will Banknifty fall?

Cruid OIl

There doesn’t seem to be any reason for Banknifty to fall other than profit booking. Two banks account for more than 50% of Banknifty – HDFC Bank and ICICI Bank, both of which are at their all-time highs. Apart from these, two other main banks SBI and Axis Bank, both are also at their all-time high, which is strengthening Banknifty. Crude oil is currently at 78$/barrel which was around 95$/barrel on 23 September 2023, which is positive for the market.Rupee is currently at Rs 83/dollar which is weakening Rupee to all-time low, which is not positive for the Indian market.

Market Mood Index

The level of Fear & Greed Index of Market Mood Index is currently 70 which shows that Banknifty should go up from here.

india vix

India VIX, which indicates volatility, is currently 14.5 which was around 10-12 for a long time. The implied volatility of Banknifty is also 14-15 in the option chain which is usually 8-9, which is indicating the volatility of the market.

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