scalp3r240

BANKNIFTY [3rd August 2020]

Short
NSE:BANKNIFTY   NIFTY BANK
The index had broken the trend channel on the 30th July signaling an overdue correction, which was followed through today in the first hour. However, DIIs decided to turn buyers at 22400-22500 zone but the rally met with a heavy distribution zone at 22700-22800. The trend remains bearish and the index should take this opportunity to correct a little further, which would be healthy, for resuming its bull run. Looking at FII and DII activity, it is safe to assume that FIIs will look at higher levels to sell and DIIs will look at lower levels to go long again.

On the upside, the index will face stiff resistance at 21800-22000. A gap up should be used as an opportunity to short the market. The short view will be negated if the index sustains back above 22040.

On the downside, below 21500, the index can easily correct up to 21000 which could be taken as a good level to go long. The long view will be negated in case the index does not respect the supports at 21000-20800.

The expiry range for the coming week could be between 22000 & 20000.
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