Bank Nifty Under Pressure: Head-and-Shoulders

BANKNIFTY has currently formed a head-and-shoulders pattern, indicating potential bearish sentiment. The asset has been showing weakness over the past few days. Additionally, a diamond pattern formed inside the right shoulder, which has also broken down. The 49650 level is a strong support line and serves as the neckline of the head-and-shoulders pattern. The market is slowly approaching this level, and if it breaks, the target could be as low as 46000.

Meanwhile, Bank Nifty is approaching the 50 EMA on the weekly chart after a strong close on the 20 EMA. Overall, the indications point to a bearish outlook for Bank Nifty. Traders should remain cautious and monitor the market closely for any potential developments.