If we see top 5 gainers in Nifty on last friday, 4 are banks (out of 9 advances among Nifty 50 stocks) and that explains why Banknifty (BNF) went up higher and higher pulling along Nifty in first half. It was on the back of ICICI's increased weightage in MSCI index. It seemed Moody's report was just another piece of document not to be paid attention to. But then Selling started and everything went downhill. For bulls the solace is that all the bearish news is now factored in and hence from here market may go up. For bears, there are plethora of reasons which I have written in my post on Nifty. So what about BNF? It finished as a green candle with higher high and higher low but with very long top wick which to me suggests the huge pressure from Sellers. Nifty's bad outlook might pull down BNF tomorrow. I have marked buying and selling areas on 15 min chart. Do not attempt to buy near support because, I fear, it will not withstand. Just because it is near 30500 figure it may pause briefly. Buying is justified only at 31100 levels with SL. If it goes up from current levels, sell at indicated levels with SL of around 100 points.
All the best. Happy trading.
All the best. Happy trading.