AkashVarma

Banknifty View for 18th October, 2020

NSE:BANKNIFTY   Nifty Bank Index
This week can be a really tricky one. We are edging closer towards the US election, new lockdowns in France and London and various other event will have a huge impact on the markets.
We clearly saw a double top formation on both the indexes.

Expecting some range bound market as the huge engulfing candle will lead to consolidation. Personally would trade with 50-60% quantity.

Now for tomorrow -
A short trade can be made below 23420 but a critical confirmation should be taken at 23375. A lot of minor intermediate supports will come into play (23250-23200-23150) but final target can be 22950.

Going long can be a really tough decision to make as selling pressure can resume at multiple upper levels. A long can be initiated at 23627 with confirmation at 23662 till 23780-810

Complete no trade zone between 23627-23375 For safer trading the lower limit of this zone can be 23200.

Dow is also looking for a consolidation after getting rejected from entering the support channel

Scenario's as per opening -
Gap Up Opening - Zone to watch will be - (23627-23662) A breakout or breakdown of this range can be traded with tight stoploss

Flat or Gap Down opening - Zone to watch will be (23627-23375) A breakout or breakdown of this range can be traded with tight stoploss

Price action at all these levels will be key.

Happy Trading!
Shubh Navratri!

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