Initial visual inspection shows the index is recently trading sideways between 30230 and 31715. Point to notice here is that we could observe a negative divergence through oscillators i.e. RSI and MACD. That clearly indicates a negative bias. So by considering these factors, index falling to 30230 (further 400 pts away from current level) now almost looks inevitable.
Once BankNifty hits that level, it is important to observe how it responds to that level. Because apart from being range bottom, trendline could offer some support to the index and immediately below that is a strong round number 30K. Hence existing shorts can be held until 30230 and any new positions have to be reactive based on how Bank Nifty responds from then on.
(Disclaimer: Our charts and contents are just for the purpose of analysis, learning and general discussion. Do not consider these as trading tips or investment ideas. Trading in Stocks, Futures and Options carry risk and is not suitable for every investor. Hence it is important to do your own analysis before making any investment or trading decisions based on you personal circumstances and it is always better to take advice from professionals)
Once BankNifty hits that level, it is important to observe how it responds to that level. Because apart from being range bottom, trendline could offer some support to the index and immediately below that is a strong round number 30K. Hence existing shorts can be held until 30230 and any new positions have to be reactive based on how Bank Nifty responds from then on.
(Disclaimer: Our charts and contents are just for the purpose of analysis, learning and general discussion. Do not consider these as trading tips or investment ideas. Trading in Stocks, Futures and Options carry risk and is not suitable for every investor. Hence it is important to do your own analysis before making any investment or trading decisions based on you personal circumstances and it is always better to take advice from professionals)