On Tuesday , Bank-nifty opened just near PDH (previous day’s high) and tested PDH (previous day’s high) and got rejected . Ii then moved down forming a NVD (Normal variation day) to downside. Though, there was a move downside , the sellers did not looked very confident and they just managed to keep prices back in previous day’s range. As of now, there is no clarity on Banknifty and sellers were strong st higher levels and buyers also protected the fall. So, we need to watch today’s price action above or below yesterday’s range to get clarity. Until the price trades within yesterday’s range, the confusion will continue.
What can be expected now:
There was a rejection at PDH yesterday, so we need to see if there is any follow through to downside by sellers today. In case, prices get rejected at PDL and buyers are able to protect the downside , we might move sideways to upside. Only if prices are accepted above PDH, we can see a good move to upside.
Trade plan for today:
I do not have any plan to trade open auction as I do not have much clarity. On broader view, I am bullish above POC- 21450 levels (point of control) and will be bearish below it but PDH and PDL are also important levels to watch for. Also, I am expecting a directional move only if prices break either PDH or PDL decisively.
- There is not much clarity in Banknifty. This sideways move can be absorption of supply or buyers exhaustion and we will get confirmation only if we move in that direction.
- Today is last day of month and tomorrow is weekly expiry before a long weekend, so there is a chance that prices can be volatile due to adjustments big players might make.
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.