Please read this post along with my post on Nifty to get complete idea. Tables turned today and Banknifty and Nifty went south. More surprising is the fact that DIIs today were Net Sellers. I do not remember seeing that figure negative during prolonged selling phase by FIIs. Now it seems they are booking profits and adjusting or rather improving their NAV.
Option chain data for Banknifty is quite inconclusive like yesterday and there is jumbled buildup. Till yesterday it showed good support buildup at 29500 and it was broken today though later BNF closed above 29500.
On daily charts, BNF closed today with a big strong red candle with much lower high and much lower low. It is still trading above all long time averages but it is just above high made on friday, 29,419. And what I see on chart today indicates that there is very strong chance that tomorrow it might get broken. If that breaks then next support is straight at 29000. One might try buying there with strict SL, tomorrow being expiry. But if BNF rises up early and gets into Selling area marked on chart, one can try shorting with target mentioned on chart. But if this price movement happens later in the day, do not take the trade since on expiry day, trade might reverse due to compulsory squaring of positions.
All the best. Happy trading.
Option chain data for Banknifty is quite inconclusive like yesterday and there is jumbled buildup. Till yesterday it showed good support buildup at 29500 and it was broken today though later BNF closed above 29500.
On daily charts, BNF closed today with a big strong red candle with much lower high and much lower low. It is still trading above all long time averages but it is just above high made on friday, 29,419. And what I see on chart today indicates that there is very strong chance that tomorrow it might get broken. If that breaks then next support is straight at 29000. One might try buying there with strict SL, tomorrow being expiry. But if BNF rises up early and gets into Selling area marked on chart, one can try shorting with target mentioned on chart. But if this price movement happens later in the day, do not take the trade since on expiry day, trade might reverse due to compulsory squaring of positions.
All the best. Happy trading.