Nifty Bank took support of trendline and bounced back.
But now it has reached to it's temporary resistance level.
If it starts trading above Friday's high then it can show some fireworks.
1. Nifty took support at 50 DMA
2. If you see Fibonnaci retracement, it retraced upto 38% and turned back on higher side
OI data analysis:
1. It respected 11400 where we had highest OI in PUT side.
2. Yesterday we had equal number of OI on 11500 PUT and CALL but at the end Bulls has won the ...
On Consecutively second day nifty formed an inverted hammer pattern which is bearish reversal sign.
Option chain data suggests small short covering at 11500 CE plus heavy PUT writing is seen at 11500 PE which indicates it is difficult to break 11500.
One can go long in Nifty with 11500/11490 as SL.
Bank nifty took excellent support at support line.
It created inverted hammer pattern which is a sign of bearish reversal.
I think one can take a long position in Bank Nifty with SL of trendline on closing basis.
After breaking channel Nifty retraced to 23% from all time high.
Today it created inverted hammer pattern which is a bearish reversal pattern.
Also there is considerable position in 11500 PUT so if Nifty starts trading above 510 one can go long.