BANKNIFTY MASTER PLAN from Monday onwards:-
-- Well folks ..... It looks like Friday's low will play a crucial role in deciding BankNifty's fate in near future. The spot level of 27000 (+ / - 50 points) shall now act as make or break level. This spot level is really important for BankNifty. It is like a big junction point on a long highway.
-- Bulls will have to save it by pulling back BankNifty index if in case BankNifty slips towards 27000 or even bit lower i.e. 26950 in upcoming days.
-- If not, then it will open the gates for downside targets like 26900, 26850, 26750 and so on. Hence, bears will be in business only and only if they stay below 27000 decisively.
-- On the upper side, Friday's support level (which got breached decisively during second half) may now act as minor resistance i.e. 27190 to 27200 (+ / - 50 points). So, overall, we can assume that 27200 to 27250 is the range to look out for.
-- Looking at Friday's final report card where majority of world indices traded on a highly positive note (especially DOW), there is a good chance that the resistance range of 27200 to 27250 will be tested and challenged quite a few times right from the opening of Monday's session.
-- Bears will have to ensure that even if BankNifty starts on a positive note on Monday morning, they must be able to PULL IT BACK again and stay below the range of 27200 to 27250. That will keep their chances alive of breaching 27000 levels in near future.
-- However, if bulls somehow manage to get above, stay above and trade above 27200 to 27250 levels, then it will brighten their chances to surpass immediate targets like 27350, 27450 and so on (in upcoming days).
-- Trade carefully guys ..... It looks like weekly option premiums are on higher side. Maybe due to anticipation of interim budget (Friday the 1st February).
Good luck to all .... Hope you make good money.
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