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 (https://onerighttrade.com/index.php/2020/07/20/pre-market-analysis-banknifty-future-20th-july-2020/), 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.
- Banknifty is weaker than Nifty, I feel now its the time for banknifty to show some strength.
- 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.