Banknifty daily analysis for 28/07/23.

For the last 6 trading day banknifty has been trading inside a range and today it has formed a bearish engulfing candle.

Banknifty is taking support from 45600 levels and has been tested many times. If the levels is breached and market starts trading below the levels, there are high chances of market testing 45200 levels.

On the hourly charts, not a single green candle is formed and market has closed below the 20 ema.

The market fall indicates some negative trend form short term. 38.2% fibonacci levels are giving market some support, below the level Banknifty can test 61.2% (golden ratio) fibonacci levels.

Support :- 45630, 45350
Resistance :- 45850, 46070

RSI indicator is showing some bearish divergence on the daily time frame and there are chance of market retesting lower levels.

Wait for the price action near the levels before entering the market.