BankNifty Futures: 18th was a copybook trading day and fortunately we were on the right side of the trade as well. This can be primarily be attributed to conviction in the plan as much as right analysis for the plan. Why did we mention that 17140 is a key zone?( we know the market reaction once that was breached)
If you check the hourly candles there were multiple instances when that was respected and it was building up supply there. beyond that we saw a straight dash to 16900, to be honest the ease with each was broken was surprising.
Now whats next? The new Trend decider now is 16940-50 levels if you observe the charts. until we manage to hold or trade below it pull backs on intraday basis can be shorted. Downside targets can be near 16650 or lower. It will be key to observe whether the breach today was an aberation or a build up of new trend. Hence prudent would be to see how that level is treated. If markets moves and holds above it can give a good pull back trading opportunity to the contrarian players.
What were the potential Trades today?
Now for the next session couple of key observations. 1. its still an inside day candle today. hence chances are tomorrow can be a choppy/indecisive session until a clear direction is formed. Range is now more constricted with resistance at 17250 and support at 16940 zones. So if its too range bound try pull back trades within the zones. If we want a clear direction we would rather wait for a break out of this range and take a trade again.