Observation from previous day:
On Wednesday, Bank-nifty opened inside previous day’s range and formed an inside day with sideways value area. So, nothing much changes in from Tuesday’s analysis (please do read that also if you have not (https://onerighttrade.com/index.php/2020/09/02/pre-market-analysis-bank-nifty-future-2nd-sept-2020/). The day formed was Neutral extreme up day, so a follow through on upside in the start is must for buyers to take control. If that does not happen, we need to be cautious on the long trades.
What can be expected now:
There were two attempts by the responsive sellers to cross PDL (previous day’s low) of Tuesday and both the attempts failed, so till the prices get comfortably accepted above PDL (previous day’s low), we can expect sideways move but break of PDL can accelerate the down move. I am not looking for any long trade today but we also need to monitor if prices are getting accepted or rejected above PDH (previous day’s high).
Trade plan for today:
Bank-nifty is expected to open inside previous day’s range and the best place to enter a short trade would be rejection from PDH (previous day’s high), So, I would be looking out for that. If bank-nifty starts to move sideways, then I would wait for IB (Initial Balance) completion to get further clarity on bank-nifty.
- In spite of me having Bearish view, I will not opt for any short trade if prices are accepted above PDH (previous day high).
- Same analysis also applies to Nifty also and we need to observe Nifty to see if it is in sync with Bank-nifty or not.
- There is a possibility of sideways movement also inside previous day’s range.
- Since, it is expiry today, Banknifty can get volatile towards the end.
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, Bank-nifty in above statements Indicate Bank-nifty future for current month and not Bank-nifty index.