On Friday, Banknifty (BNF) behaved strong. For last few days, it was Nifty which took the lead but on Friday it was BNF’s turn. So it finished as a strong green candle albeit with a very small range of 243.9 points. Nifty too moved in a narrow range of 41 points. So, how it might move on Monday and day after? If we look at daily chart, BNF yet again made higher high, higher low and higher close. The RSI is at 67.42 so not yet in overbought zone and MACD is just making a bullish crossover. Using Bollinger Bands we see that BNF has not yet crossed upper limit of Band. So, all these indicators suggest that there is still some upside left to BNF. The slow rise of Nifty and BNF also indicate that slowly there is saturation of buy orders. But the OI spread shows that there are strong supports at 32300, 32200 and then at 32000. So if at all BNF might fall it will not be sudden crash but will go down slowly, day by day. Also it will take some strong bearish trigger to activate that. On 15 min chart there are no buying levels. But on the basis of OC data, one can buy if BNF reaches 32300-32200 zone and Sell above 32600 since it will be above Bollinger band. But this is valid till next 2 trading sessions only.
All the best. Happy trading.
All the best. Happy trading.