ArcherDAVIS

BANKNIFTY ANALYSIS 18/2/2021

NSE:BANKNIFTY   NIFTY BANK
Last week in the market, we were looking a possible breakout or breakdown situation on both Nifty and Bank Nifty . It turns out, it was a breakout towards 15,400 and 37,700.
Now it looks there is a possibility of a false breakout as well. If the market fails at one at one end of the range, it generally tests the other extreme side.

Here, we also have a head and shoulders pattern. The call writing in today's expiry for BNF 37,000CE was 106K. DIIs have also been net sellers for a while now.

For the coming week, it will be interesting to see how the market reacts at this level. If the breakdown occurs below 36,400, there could be some selling pressure to re-test 36,000.
If the market does move higher again, there is strong resistance at 37,000.

I do not have a bias on the possibilities, because the market is too overstretched with heavy liquidity.