Pre-Market Analysis: Banknifty Future – 21st July 2020

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Observation from previous day:

On Monday, Banknifty opened above PDH (Previous day’s high) and tested the single print zone oat 22300 levels as indicated in previous day analysis (, But instead of sharply rejecting from that zone, it moved sideways and prices were accepted above PDH (22470 levels) . This shows us that the sellers who created that single print are not longer interested to defend that level or are weak. This gives us a Bullish bias on banknifty.

What can be expected today:

If Buyers take control from the start and prices move above PDH, we can expect banknifty to test the poor structures above it (poor lows indicated in charts). I can also form a new swing high which is 600+ points above PDH, So you see if prices trade above PDH, i am very bullish in banknifty. I will not look for a trade if prices trade back in range or comes below PDL (This would indicate continuing weakness in banknifty)

Trade plan for today:

I am looking for a long trade in banknifty only above PDH and no where wlse. the best place to get long would be rejection at PDH. If prices do not get accepted above PDH, i will not look for any trade in Banknifty.

Some cautions:

  1. Banknifty is weaker than Nifty, I feel now its the time for banknifty to show some strength.
  2. Don’t look for any short trades in banknifty above PDH, as up move can be sharp anytime.


Please note that this is a personal view for learning , observational and education purpose and is not a trading recommendation. Trading futures carry a risk, so you should consult a financial expert before taking any risk. Also, Banknifty in above statements Indicate Banknifty future for current month and not Banknifty index. I would be updating post-market analysis in the follow up post later.

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