This is bank nifty chart on the daily time frame. If you see bank nifty has broken critical support at 33,000 levels. Now, what will happen on Monday?
Friends, on Monday we can see a flat to a small gap up opening in bank nifty at 32,950 levels.
If you see clearly, bank nifty has formed an inverted cup and handle bearish pattern on the daily time frame. So, this bullish move can be a retracement move to hit the zone of resistance at 33,200 levels. So my trade plan will be to go short if bank nifty opens gap up and hits 33,200 levels with a stop loss at 33,500 levels.
My target will be 32,400 and second target will be at 32,000.
And if we open Gap down, I will wait for the market to break 32,300 levels for entering shorts. When bank nifty opens gap down, then I expect a recovery and the market might move and hit 32,800 levels on the upside.
Till the time we break and close above 33,800 levels on the daily time frame we will remain bearish.