BANKNIFTY for 24th January

Banknifty (BNF) was on strong footing today for reasons mentioned in yesterday’s post. However, one important fact I failed to mention in my post yesterday and that was that BNF has broken the neck-line of Head-and-shoulders pattern which means that bearishness is set to deepen. This along with yesterday’s close below 100 DEMA tells me that Buying in BNF is yet risky, even though it finished as a green candle today. Please check my video posted on youtube under channel name Market Movers India for slightly more analytical content. So then where do we sell? I have marked levels on 15 min chart. For traders who are thinking, “ but what about the fact that BNF is at lower limit of Bollinger Band”- observe what has happened between 30th October and 28th November to BNF (one full month!) when it continued to rise while remaining at upper edge of BB. So, same thing can happen now at lower edge too. So take short trades with SLs .
All the best. Happy trading.

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