Banknifty lost around 800 points in this week and closed near 42k levels. Though the index has been trading above the 20 ema but it is forming a bearish pattern on smaller time frame.
Banknifty has tested the 38.2% fib level on the weekly charts and if it breaks below it, it can test lower levels.
The market on the daily time frame, has closed below the 20 ema and took support around 41900 level.
During the last trading session, the market formed a bearish flag and pole pattern and gave a nice break down of more than 300 points and regaining after touching the support level.
On 15 minute chart, the market respected the 20 ema and took rejection from it and finally giving a close above it.
Support :- 41920, 41650, 41375
Resistance :- 42340, 42645, 42900
The index is trading in a parallel channel formation.
The US index Dow Jones has given a break out of the consolidation zone and closed gaining 2%. Indian market can follow the trend. Keep an eye on SGX Nifty, if it is giving a positive move, Indian markets can follow the move.
Wait for the price action near the price levels before entering the market.
Banknifty has tested the 38.2% fib level on the weekly charts and if it breaks below it, it can test lower levels.
The market on the daily time frame, has closed below the 20 ema and took support around 41900 level.
During the last trading session, the market formed a bearish flag and pole pattern and gave a nice break down of more than 300 points and regaining after touching the support level.
On 15 minute chart, the market respected the 20 ema and took rejection from it and finally giving a close above it.
Support :- 41920, 41650, 41375
Resistance :- 42340, 42645, 42900
The index is trading in a parallel channel formation.
The US index Dow Jones has given a break out of the consolidation zone and closed gaining 2%. Indian market can follow the trend. Keep an eye on SGX Nifty, if it is giving a positive move, Indian markets can follow the move.
Wait for the price action near the price levels before entering the market.
