Bank Nifty EOD Update Feb 8 - Post RBI No Rate Cut

Post RBI decision on rate cut, Bank Nifty corrected to 20070 and bounced back . It is not surprising that even after bad news of no rate cut, it bounced back from low and closed at 20245. But now it is at crucial juncture of 20400. So it is now case of a make or a break for Bank Nifty! Why? Let us understand from following chart:

Chart shows from Sep 07 top(20576), Index moved to 17600 between a major solar cycle (Sep 22 to Dec 22). The nos 204(00) and 176(00) are important levels as they are consecutive Gann Nos of 180 deg (176 & 204)

Post low of 17600 (on Dec 26, close to Dec 22 cycle start), Bank Nifty moved up so quickly that it reached back to 20400 even before start of minor cycle (Feb 4) and now facing resistance at 20400. So if it not able to cross 20400 convincingly and hold above it, Bank Nifty may slide to 19700/19000 and may even go back to 17600 very sharply.

So next 2-3 days would need caution if Bank Nifty struggles at 20400 level. If it breaks 20400 decisively next level could be 233(00) that next Gann No in 180 degree above 204.

Hourly chart shows Bank Nifty bounced back from lower line of red channel. I marked 22 bars of correction time and it took exact time to complete correction. Tomorrow bank Nifty may reach 20400/20500 level and may face resistance at 20576(High of Sep 07). If it decisively breaks it then 20700/20800 is possible.

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