Like Nifty, Banknifty (BNF) too made a strong bullish green candle on daily chart. However, if you track both indices on say 5 min (or on 15 min) chart you will see that Nifty kept making higher highs till even 3:05 pm, BNF made its high at around 11:50 am and then just didn’t go past it! What does it mean? It shows that BNF is way far weaker than Nifty is, and tomorrow if there is a fall in markets BNF could trigger it. Therefore, I have marked today’s high as resistance, which BNF should cross if it wants to reach higher. Please check my video posted on youtube under channel name Market Movers India for slightly more exhaustive and analytical content.So take long trade only if BNF stays above 30780 for considerable time. Unfortunately, there is no selling area on charts above 31000 where I would have liked BNF to sell. Remember, BNF’s long term outlook is still negative since it broke Head and shoulder pattern’s neckline and that explains why BNF didn’t go past 30777 enthusiastically.
All the best. Happy trading.
All the best. Happy trading.