BANKNIFTY for 11th December 2020

The index respected its 1 wk avg., now pushed up to 30300, aided by voluminous buying in the last hour by FIIs as the index kept drifting lower throughout the day. Stochastics is in a perfect oversold zone giving plenty of room for upside, although a slow-paced upward movement would mean a lost opportunity for buyers. One can expect a resumption in the uptrend in the coming days, all depending on its behavior around 31000.

LONG, if the index sustains above 30600 for targets of 30800-31000. A decisive breach of 31000 could lead the index to 31800. In case of a gap down, one can also initiate a long if the index takes support around 30450.

SHORT, if the index trades below 30700 for targets of 30600-30450-30200. A breach of 30200 would confirm an oncoming, and much awaited, correction. In case of a gap-up, any weakness around 30800 or 31000 should be used as a shorting opportunity.