BankNifty after 1000 point fall in continuous 4 sessions gave a gap-up opening on Friday. With a 270 point gap-up it really makes me think twice to analyze the chart.
All these days I can see either gap-up or gap-down without giving a minute of chance to the day traders. It is a pure domination on the intraday players. It really throws challenges to the traders or is it giving indication for the traders to take a lengthy pause to their trading. Only Market knows.
Even though I do not have much idea about cricket game but all I know is that the batsman would like to wait for a good ball to hit confidently( to my little knowledge
). Similarly day traders have to maintain calm and peace and be an observer first and then attack only the right time.Let me head to the technicals of BankNifty. I should say that it has survived for the time being from being closed below the 200 weekly EMA at 8800.
Below 8800 the only support lies at 8600. Above 9100 with a stop-loss at 8990, it can head towards 9400 and 9700,9850.
Remember the large trend is down with weekly trend line resistance being 10800. But the relieving news is Nifty forming Falling wedge pattern which can equally boost some upward movement in BankNifty with the given levels. So, trade the levels – trade the trend. Here is the weekly chart of BankNifty:
This is not an article for the gamblers who seek short term thrills in the market, nor is it intended to be a theorectical exposition on day trading for academic researchers.
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