Banknifty had a severe fall on 31 August, when India and China had some argument near the border in Leh. This triggered a huge sell off from the day's high and Banknifty ended around 3% lower for the day. Today, Banknifty consolidated in a range and this was expected as Banknifty had 2 continuous trending days. Usually after a trending day, a stock or index consolidates, which could either be a stage of accumulation or distribution. What happens in the range needs to be analysed carefully, in order to make an educated guess as to where the price could break out. A lot of bullish pin bars are visible inside the range, showing sign of strength. Bearish candles do not have any exceptional volumes, which could show sign of supply. Rather, the bearish candles ended up closing near their midpoint, from the low, which suggests that buyers pushed the price up from the candle's low. Volumes were present when the pin bar candles were printed, suggesting that buyers were the one who pushed the price up rather than sellers, who pushed the price down. All this is just an educated guess and I am open to taking trades in either direction. I would only take trades when the price breaks out of the range, on either side. But I expect the price to move with momentum.
I am not a SEBI registered investment advisor and hence do not follow my analysis blindly.
Be aware of what you are trading and the risk associated with it.
Stock market is risky and you can lose a lot of your capital.
Be wise and trade carefully!
Grateful!🙏
I am not a SEBI registered investment advisor and hence do not follow my analysis blindly.
Be aware of what you are trading and the risk associated with it.
Stock market is risky and you can lose a lot of your capital.
Be wise and trade carefully!
Grateful!🙏
Comment:
Price is still trading inside the range. No breakout yet. If the price were to stay in the range for the entire session, then the probability of a huge momentum breakout will increase significantly. I have no active positions yet.
