BANKNIFTY for 31sr January

Please read this post along with that on Nifty to get full perspective. All the things about trading tomorrow that I said about Nifty also go true for Banknifty- meaning that tomorrow it is friday and a day before budget day. This in effect meanns that not big moves are expected tomorrow. But I must point out some recent developments as far as BNF's daily chart is concerned. BNF too made a strong bearish candle like Nifty and made a fresh close below its 100 DEMA which is a big thing. If you see RSI , it is still not in oversold zone ( 37.75) so some slide can still happen. If some of you are wondering why BNF can not be bought here if it is at Bollinger band's lower limit, then I will again say what I said few days back. Look at BNF between 22nd July to 23rd August, when it was majorly outside the bollinger Band's lower band and yet kept on going down- for one full month. So it can happen even now, if... if the budget doesn't give any reason to break the trend and move up. On 15 minute chart, there are no clear cut buy or sell levels so all trades will have to be taken on live market movement.
All the best. Happy trading.

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