As we discussed, Banknifty's analysis gave a really nice momentum after the election result. Now, Banknifty is trading at a high time and is also forming an inverted HNS pattern. However, Inverted HNS works best at the bottom of the trend, not at the top. I am expecting a correction or sideways consolidation for Banknifty in the upcoming week.
Reason:
Verdict:
Bullish
Plan of action:
Follow the Chart plan.
Reason:
- RSI = 75 (Bullish) trading in the bullish zone. (Bullish)
- Inverted HNS breakout. Only make a bullish position if retraced. (Partially Bullish)
- Price > EMAs, 50 EMA was providing a nice support point. (Bullish)
- 46550 will be acting as a strong support point.
- OI is still showing HUGE PE writing on 47000. the only point of concern on the upside is 47500. (Bullish)
- FII Data is neutral in the case of Banknifty.
Verdict:
Bullish
Plan of action:
Follow the Chart plan.
