Observation from previous day:
On Thursday, Banknifty opened inside previous day’s range and sellers failed to follow through to downside and entire day was consolidation in the sideways range near PDL (previous day’s low). As of now, there is no clarity and there is US election on Nov 3rd, so probably it is going to move sideways till then. But before moving upside, a good down inventory adjustment break would be healthy.
What can be expected now:
I have a sideways view on Bankniftyy because of US elections and we probably might end up moving sideways. But, we might see move downside only if prices are accepted below PDL (previous day’s low).
Trade plan for today:
Banknifty is expected to open inside previous day’s range and I do not have any open auction clarity. Also, I am not looking for any trades today and will probably wait and observe what prices are doing today.
- Do not carry over night positions.
- No long trade below PDL (previous day’s low) as we do not try to catch a falling knife.
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