BANKNIFTY for 23rd January

Today too, Banknifty (BNF) made yet another LL and LH as compared to previous day’s candle on daily chart and fell below 30700. Please check my video posted on youtube under channel name Market Movers India for slightly more analytical content There are three things one must observe in BNF’s daily chart:
1) BNF is still cruising outside lower limit of Bollinger band which means that buying should come in any day now.
2) Also, BNF today closed below 100 DEMA which means weakness deepens and fresh short positions could have been initiated.
3) The RSI is at 34 which is near oversold limit so after some fall or even now, buying may come in.
Now point 1 and 2 contradict each other, so which one to follow? Tough call! Axis Bank results have also come and except slippages, which increased by 24.7% QoQ (65.88% YoY), all other important parameters are good and better than market expectations. So it again will be interesting to watch how the market reacts to results. As for levels, any long on BNF can be initiated only after it crosses and sustains 30820 first. For Selling I have marked Selling area and Resistance which can be used for Shorts. Keep in mind, tomorrow being expiry, take trades with strict Stop Loss.
All the best. Happy trading.

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