Bank Nifty a candle a week overview: Creating wedge pattern (Click here to read...). BLUE line is resistance of 37000 levels and RED line is support trend line. 4-5% correction is due in as per Nifty 50 as it has runned too much.
Bank Nifty a candle a month overview: Creating wedge pattern (Click here to read...). BLUE line is resistance of 37000 levels and RED line is support trend line.
BankNifty weekly overview:
Banknifty rejecting the levels of 36500 (major support) and 37000 (major resistance). Banknifty is just consolidating after breaking the levels of 36500 (upside) or breaking the parallel channel upside.
But it is still facing the resistances on 37000 levels. For the major up move Banknifty has to close a DAY-candle above 37000 and give a follow-up candle (a green candle above 37000 and closing above the high of the previous day candle), then Banknifty will give 1000-1200 points intraday.
But if it breaks the 36500 levels below (which is I am expecting, any day), then give a follow up candle closing below 36000 levels, then panic selling will be starting which will bring Banknifty to 35000-34500 levels in intraday.
Banknifty intraday trading chart for 13/09/2021.
For intraday 36800 level upside is acting as a major resistance (GREEN LINE) and 36500 levels downside is acting as a major support (RED LINE).
The trend lines (BLACK LINE and RED LINE) are making a wedge pattern (Read here...). Breaking the BLACK LINE with 15 minute candle will make it bullish. And breaking the RED LINE with 15 minute candle will make it bearish but there are many supports between 36000 and 36500 (like 36400 and 36200).
1. Long position buildup:
Establishing a long position indicates that more investors are expecting price increases and are holding long positions. This can be for a variety of reasons, including stocks that are in an oversold area, some good news about the stocks, or some positive global leads.
2. Short accumulation/buildup:
Short accumulation shows that more investors are expecting interest rates to fall and are making short bets. There are many reasons for this, such as stocks are in an oversold area or stocks have bad news.
3. Long unwinding/closing:
When a long position is closed, people start to sell a long position because some news or goals have been achieved. The reasons for closing a position for a long time may be different, but the result is the same.
4. Short covering:
Traders start buying stocks that they have sold before to close their positions or to exit the position with profit if they achieved what expected.
As depicted below, the Banknifty is moving in a channel (between blue lines) and 36500-36600 will act as major support. As as according to
1. If Banknifty takes support of 36500-36600 levels (look for price action means look for bullish candle pattern), then Banknifty will go to 36850 levels and/ or 37250 levels.
2. If Banknifty opens GAP-UP, then it will consolidate for a while, if breaks 36850 levels, then you can buy PUT with small quantity for 36600 levels or 150 points (approx.).
3. If open GAP-DOWN, then wait for the price action at 36500-36600 levels, it is recommended to avoid trading.
Weekly analysis: Let see what may happen in the next week of 06-September 2021 to 09-September, ot has only 4 trading days.
As Banknifty (an NSE index for top 12 banks), has broken its bounded movement in a parallel channel and closed above 36500 levels and consolidating for a while. But a rejection is seen at the levels of 37000-37100 levels (may be waiting for some news to break it). If it breaks 37000-37100 (upwards) levels then we will see fast movement of 1000-1200 points or more till 1500 points.
But if it breaks the 36500 levels, downwards then panic selling will be started below 36000 levels which will bring down the Banknifty to 34500-34000 levels in this week or this month. But if it holds the fort above 36500 levels and consolidate and move towards 37000 levels, slowly, then you can buy Call, blindly for the fastest movement of the Banknifty.
