BANKNIFTY WEEKLY UPDATE

OBSERVATION
*pcr is down to 0.7
*we had expected a knee-jerk reaction in the market
*vix index has come out of the bottom
*now more than nifty banknifty has given a healthy correction
*crude is hubbling around 95-97
*dollar index has risen above 108
*US-10Y above 3%
*all not good signs for banknifty index
*but we have seen them come down from this levels
*kotak bank was not included in ftse rebalancing basket
*so kotak can be underpressure


BANKNIFTY TECHNICA VIEW
-index can retrace more towards 38000-38300 zone
-we can see further downside in the index but it will be good buy zone
-we need to buy the first healthy correction
-first re-test of 20-dma moving average and 23.6% retracement is near the zone of 38000-38300
-pcr is placed @0.7

BANKNIFTY LEVELS TO WATCH
*i find it hard that below 38720 banknifty will sustain on downside
*if banknifty sustains below 38750 it will open for 38500-38250
*levels for banknifty have increased (spread) due to rise in vix

banknifty crucial support
38720-38500-38250
banknifty resistance level
39225-39450-39700

NOTE:
*for more updates check the link in the signature box below
*find regular updates for market in the channel