$BANKNIFTY is going to touch the support level of 39766
Observations:
$BANKNIFTY has a strong support at around 39780-39760 levels.
A big Gap Down on Friday and a big tussle between Buyers and sellers resulting in more than half of Friday being range bound. This is indicative that buyers have still not taken stop-losses or have exited their trades.
Expected reaction in the week of 13th March:
1. The coming week of 13th March, is expected to be volatile, as buyers will put effort to fill the gap to minimize their losses due to the huge gap down. However, continuation of the downtrend is highly likely till the strong support region of 39780-39760.
2. Having said that, since the gap was due to some news, these gaps usually are not trend changing. And hence my expectation on longer term is not very bearish . This means there would eventually be gap filling either in this week or the next. And in my opinion, $BANKNIFTY is still not weak in trend. Hence my expectation is that of there is a bounce from the support level mentioned above, then it will retouch the swing high of 41670 as first target, 43110 as the second target.
$BANKNIFTY has a strong support at around 39780-39760 levels.
A big Gap Down on Friday and a big tussle between Buyers and sellers resulting in more than half of Friday being range bound. This is indicative that buyers have still not taken stop-losses or have exited their trades.
Expected reaction in the week of 13th March:
1. The coming week of 13th March, is expected to be volatile, as buyers will put effort to fill the gap to minimize their losses due to the huge gap down. However, continuation of the downtrend is highly likely till the strong support region of 39780-39760.
2. Having said that, since the gap was due to some news, these gaps usually are not trend changing. And hence my expectation on longer term is not very bearish . This means there would eventually be gap filling either in this week or the next. And in my opinion, $BANKNIFTY is still not weak in trend. Hence my expectation is that of there is a bounce from the support level mentioned above, then it will retouch the swing high of 41670 as first target, 43110 as the second target.