Sunday, May 2, 2021

Good Short Covering In Banks & Now Looking Bullish!

One month has been completed of this financial year and the market has shown too much volatility in this month. Banknifty touched to 30400 that was support as per weekly chart and now it has closed above resistance i.e. 30800. Now, this resistance will work like support but we have to wait for confirmation of up moves. If we talk about the Nifty then it has given breakdown to support before one week and now it is trading above this support.

Nifty 50: The support has broken in the last week but the candle was Doji and it is the indication of the neutral sentiments. So as per my view, it was not breakdown and nifty was recovered with COVID cases. The nifty has tried to break the trendline but not succeed. On a weekly chart, it has a closed with Inverted Hammer that is the signal of reversal.

As per swing trading, nifty is trading in a range and again ready to come down for 14300. If it will come down then there are chances it will make the third bottom. Also, this rally came near month-end so we can say it was short covering due to expiry. Now need a fresh signal for clear trend.

Nifty Bank: Here is the same scenario i.e. Inverted Hammer but plus point is it has closed above the resistance. So now this resistance will work as support and banks were recovered too much with the monthly expiry. Monthly option data is looking bullish but is it not worth. We need at least three days data to predict the monthly trend of the F&O script.

On the daily chart, banknifty has worked as per Cup & Handle and given target as well. It is looking bullish as per swing trading.


Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.


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