0On Jun-26, Banknifty traded in a range of 21800-21300. The daily chart shows the possibility of the formation of a wedge structure. The bearish divergence on the MACD histogram reinforces this wedge possibility. So we need to be cautious on the upside.
The top made on 24-Jun was precisely 60 trading days (and 92 calendar days) from low made on Mar-24. It suggests a trend change possibility with Jun-24 as a top. The Low made on Mar-24 was precisely 60 trading days from the top made on Dec-30, 2019.
The Hourly chart shows a bearish MA crossover. The bank nifty is now consolidating in the range after crossover. It increases the possibility of down move or further consolidation in the range of 21800-21300 before any big upmove.
Gann Box:
The daily gann Box shows a strong resistance zone @ 22000-22200 and support @ 20700-20400.
FNO Data:
Future OI reduced by 6% suggesting short covering, but a considerable discount in the spot to future price (130 points) indicates bearish sentiments.
Trade Plan:
Above 21800 targets are 22000/22200
Below 21300 targets are 20950/20700
