BANKNIFTY for 8th January

On daily chart , Banknifty today made identical red candle like Nifty but with more body and low much closer to yesterday’s low. The fall in banks and finance companies came quickly and pulled down Nifty yesterday and today too. Yesterday BNF closed below its 50 DEMA but today, after opening gap-up penetrated it but closed above. The 5 main constituent banks which account for more than 75% weightage are not looking very strong. SBI is looking particularly week. Axis Bank and ICICI made lower high lower low. Only Kotak looked a bit strong. HDFC Bank finished with higher high, higher low above its 50 DEMA but as a Doji candle. So BNF is still vulnerable and can go down. I have marked a selling area on 15 min chart which can be used. Buying should be avoided for now.
All the best. Happy trading.

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