Observation from previous day:
On Friday, Bank nifty opened inside previous day’s range and sellers did not manage to even take Banknifty near PDL (previous day’s low). It consolidated some time inside IB range and then broke to upside forming a NVD (normal variation day) to upside and again consolidated. The entire day’s activity was inside previous day’s range, so there is no clarity or we can say that there might be no or very less OTF (other time frame) involvement.
What can be expected now:
Bank nifty is still in the sideways range from last few days and I expect this consolidation to continue further inside this range roughly from 23000 to 24200. Only a break above or below this range can give a good move in either direction. Till that happens, we might get sideways move.
Trade plan for today:
I have no trade plans on bank nifty for today but I do expect another sideways move in Banknifty. Virgin POC at 23865 is a level to watch for above PDH and we need to see if higher timeframe sellers defend this level or not which will give us further hints. Any acceptance inside previous day’s range might give another sideways or probably another inside day in Banknifty.
- I am expecting a dull day today if prices get accepted inside previous day’s range.
- Only in case prices accept above virgin POC levels of 23865, we can see upside follow through and poor high at 24200 can be tested.
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