BANKNIFTY [28th July 2020]

The day ended with a classic profit-booking selloff, with both FIIs and DIIs being net sellers. The index took support at 21800 finally and closed above it. It is now at the lower end of the trend channel and Stochastics on the hourly chart continued to remain in the oversold zone throughout the day. There is a fair possibility for the market to try and bump up above 22000 once. Technically, on the daily chart , the index remains a sell for the near term.

On the upside, the index might try and test 22050. If it manages to sustain above 22000 and is followed through with volume-based buying, the index will try and move to 22200 and 22400 ultimately.

On the downside, there is good support at 21500. A sign of consolidation at 21500-21600 could be taken as a signal of accumulation and one can look to go long at these levels for 21800-22000. However, a strong breach of 21500 will take the index down to 21000, a major support.

The week's expiry range should remain between 21000-22000.

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