BANKNIFTY for 2nd March

Please read this post along with my post on Nifty to get complete perspective on markets where I have written in greater detail. Banknifty lost around 1040 points on Friday- one of the biggest falls in last 4 years, analysts are saying. Corona virus outbreak is wreaking havoc in new geographies across the globe. However, now I think the fall will stop. Why? For that, please check my video posted on youtube under channel name Market Movers India for slightly more exhaustive and analytical content. Here in a summarised version, I will list few important reasons why I think Banknifty (BNF), and Nifty too, is likely to rise on Monday, or on Tuesday.
1) On daily chart BNF has made a full candle outside the lower band of Bollinger Band and whenever such occurrence is seen, a bounce-back is seen for sure.
2) Out of 5 high weightage banks of Banknifty ( HDFC Bank , ICICI bank, Kotak Bank, Axis Bank and SBI ), except SBI all the 4 private banks have closed below the lower band of Bollinger band on daily chart . This does prompt for some buying.
3) RSI on daily chart is at 28.82- slightly below the oversold level of 30.
4) BNF, like Nifty , is also now in weekly demand zone- meaning a reversal is on cards.
The supports and immediate resistances are shown on 15 min chart. So I will try to buy at every fall, albeit in smaller quantities since I do see weekly expiry for this week at least 500 points above CMP if the status on virus outbreak remains nearly on expected lines.
All the best. Happy trading.

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