Bank Nifty : Positive Divergence on RSI
Our view of fall in BankNifty has been correct through it has triggered stop loss of Ascending triangle breakout. We have been reiterating our bearish view on Nifty and BankNifty from past 1 month.
Bank Nifty is showing positive divergence on hourly RSI which means price is diverging from the movement in RSI. This can't be construed as a position but yes sell should also be avoided. Downward channel formed on hourly chart suggests that still some heat is left for 28450-28400 in index. We would see whether index falls to 28450 and still RSI shows positive divergence. Banknifty is having major support in the range of 28100-27980 range (trendline and retracement support). On the upside 28900 is major resistance.
28400-28500 zone is major support zone. So we'll wait for index to rise for further short position as chances of minor bounce back from this zone is very high.
Bank Nifty is showing positive divergence on hourly RSI which means price is diverging from the movement in RSI. This can't be construed as a position but yes sell should also be avoided. Downward channel formed on hourly chart suggests that still some heat is left for 28450-28400 in index. We would see whether index falls to 28450 and still RSI shows positive divergence. Banknifty is having major support in the range of 28100-27980 range (trendline and retracement support). On the upside 28900 is major resistance.
28400-28500 zone is major support zone. So we'll wait for index to rise for further short position as chances of minor bounce back from this zone is very high.
Order cancelled:
As expected , Index moved up from 28534 to 28770. Still some heat is left for 28900-29000
Comment:
As expected,Banknifty rose to 29450. on upside 29680-29750 would be the likely resistance zone where selling pressure should emerge. We'll give call in the live market to create any position.
