There are interesting developments in Banknifty (BNF). Out of it’s top 5 heavyweight (meaning which contribute for more than 75% of BNF’s weightage) scrips, SBI reversed from a low of 100 DEMA (100 days exponential moving average), Axis Bank’s Low was very near to 200 DEMA and HDFC Bank’s low was very near to 50 DEMA; ICICI bank and Kotak Bank are already in blue sky territory which means they are in very strong upward momentum. So if a recovery from low of 31000 (BNF made a low of 30996 at around 2:40 pm) wouldn’t have come, I would be very surprised. So from here onwards, there is not much leg-room. If at all BNF wants to go down, it will first have to consolidate here at 31000 levels before going down. And that poses another challenge because Nifty might go down but BNF may not. In essence it suggests to me atleast, Nifty and BNF both will consolidate at around 11800 and 31000 respectively, for next few days, before deciding on any direction. So trades will be available in both directions. Please check my video posted on youtube under channel name Market Movers India for slightly more content. BNF’s 15 min chart shows buying and selling areas marked on both sides but keep in mind that tomorrow being expiry, movements could be volatile so trade strictly with SL.
All the best. Happy trading.
All the best. Happy trading.