Banknifty opened Gap up 400+ points and then there was not much of trading opportunity as it was rangebound throughout the day. There is still a possibility of upmove towards 22500/22700, but the daily chart showing a lack of momentum.
It is interesting to observe that Banknifty did not break the top made on Jun-24 @ 22479 though Nifty-50 made a new top. So there is a divergence in Nifty and Banknifty. This is a sign of weakness unless Banknifty catches with Nifty.
Jul-07 is the Gann date (minor time cycle). It will be interesting to watch whether it breaks Jun-24 high and reverse or continue upmove.
The hourly chart shows consolidation after the gap up. Hence, the possibility of further upmove is strong.
FNO Data:
The future OI decreased by 8% with an increase in price. So normal analysis suggests Short covering. But it looks like long unwinding as we saw longs building last 2 days. So we need to be cautious at higher levels.
Trade Plan:
Above 22330 targets are 22450/22550/22700
Below 22120 targets are 21950/21800
I am cautiously Bullish.
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