Banknifty reversed exactly from the resistance zone of 21600-650 as I mentioned in the last post. It made top @ 21650 near hourly 40-SMA and reversed back making a low of 21212 and closing @21370.
The daily chart shows Banknifty still taking support on the lower line of the channel and moving in a very narrow range for the last 4 days. Breaking 20900 may take it to 19700-19500 levels.
The hourly chart shows triangle pattern formation with the possibility of move on either side after breaking out of the pattern. The bearish crossover suggests a strong possibility of down move even if it opens gap up. It needs to sustain above 21800 for further upmove. 21550-600 will act as resistance.
FNO Data:
Future OI increased by 9% with a decrease in price suggesting short build-up. The spot to future discount is increased to 156 from 124, suggesting a continuation of bearish sentiments.
Trade Plan:
Above 21600 targets are 21800/22000
Below 21300 targets are 21100/20900/20400
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