BANKNIFTY for 14th December 2020

The gap-up rally fizzled out pretty soon during the first half of the day, testing its 1 wk avg, now @ 30400, to close the day with a doji. The index has failed to sustain above 30800 twice in a row and could be headed lower in the coming days, since USDINR too is headed upwards of 74. In any case, a breach of either 31000 on the upside or the index’s 1 wk avg on the downside would give a push to momentum.

LONG, if the index breaches and sustains above 30800, for a target of 31000. Beyond 31000, the bull rally will resume.

SHORT, if the index breaches and trades below 30400 for targets of 30250-30050 and ultimately testing its trend support around 29800. A breach of the same will lead to a correction in the markets.