Long time since I posted something, Folks who had seen the past analysis would recall that we had marked 25600 as the support zones, banknifty turned around from there. On the upside 26450-26500 remain as the big hurdle.This is with the hypothesis that markets have had made top for the year and will continue to form lower highs. Hence if we see retracement zones , this provide an low risk short idea with stops above 26500 levels and a potential to test the levels of 25600 and 25200 in coming weeks.
yesterday I had tweeted , that for a downtrend prices to test the 78.2% retracement is a rarity but not an impossible scenario. Yesterday prices of course hit the stop and went past the 68% retracement to test the previous vpoc zones and the 78.2 % retracement. we did discuss the possibility of prices to move below 26450 zones and that turned out to be good scenario.
pensun1
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Yesterday it made high of 26635 but was unable to hold that level for long. and finally closed around 26500
hima.kjr
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So you are saying possibly #banknifty will come down from the current level?
PowerTrades
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@hima.kjr, Yes, idea is to maintain that view until 26450-26500 levels are breached, until that a downside rotation to test to 25850-26000 zones is a more likely possibility. if you also observe that most of the big banks actually did close the week below their week's highs as well.