Banknifty (BNF) is weak. No doubts about that. Yesterday, with lot of trepidation I marked a selling area since it was so strong that it looked almost impossible that BNF will surpass it without visiting it twice. However, let alone surpassing, BNF retreated to lower levels without even touching it. And then fell so badly that it created another selling area, though not so strong, but still formidable since BNF is looking weak now. Option chain also shows good CALL total OI build up and fresh call writing much better than that on PUT side. So BNF can be shorted tomorrow. But my advice is to see the momentum and if it is strong, short at Selling area 2 rather than at Selling area 1 or divide yopu capital in 2 parts, if possible. There is no buying area visible except at low levels of 29600.
All the best. Happy trading.
All the best. Happy trading.