Banknifty Monthy - Banking Index held its previous month low and also surpassed the previous month high and I am hoping it be closing above the previous month high tomorrow, and if it does and it is going to be a very good monthly closing, indicating likely continuance of the recent up move.
Banknifty Weekly - On Weekly, it formed a Big Bull Candle closed near it high, such types of candles as good support, hence for this uptrend to continue, the index should hold and trade above this candle low i.e 22410.
Banknifty Daily - On Daily, you can see, from many trading sessions, it has been forming candles with higher highs and higher lows, and Friday candle is a big bull candle closed near it high, Such Big candles when formed after a good move, often indicates the prices are overextended and it might rest for a while or retrace some part of it. There is also a crab pattern formed on the daily chart suggesting a resistance around 24560-24660. Price action near crab resistance is usually wild, by wild, I means you can see spikes, large movements in the prices in any direction.
So if the market opens flat or gaps up tomorrow, it might also test 25150 on the upside or the support levels mentioned above.
Conclusion: Trend is up on all time frames, it's a buy on dips on the market because it is always better to trade in the direction of the trend. Currently, the prices look extended on the daily chart and any dip would likely be absorbed quickly. Immediate support is around 23590 and 22980 levels
Disclaimer: Being a trend trader, I won't be trading any index tomorrow, will wait for it to get settled.
Banknifty Weekly - On Weekly, it formed a Big Bull Candle closed near it high, such types of candles as good support, hence for this uptrend to continue, the index should hold and trade above this candle low i.e 22410.
Banknifty Daily - On Daily, you can see, from many trading sessions, it has been forming candles with higher highs and higher lows, and Friday candle is a big bull candle closed near it high, Such Big candles when formed after a good move, often indicates the prices are overextended and it might rest for a while or retrace some part of it. There is also a crab pattern formed on the daily chart suggesting a resistance around 24560-24660. Price action near crab resistance is usually wild, by wild, I means you can see spikes, large movements in the prices in any direction.
So if the market opens flat or gaps up tomorrow, it might also test 25150 on the upside or the support levels mentioned above.
Conclusion: Trend is up on all time frames, it's a buy on dips on the market because it is always better to trade in the direction of the trend. Currently, the prices look extended on the daily chart and any dip would likely be absorbed quickly. Immediate support is around 23590 and 22980 levels
Disclaimer: Being a trend trader, I won't be trading any index tomorrow, will wait for it to get settled.
