Bank nifty future opened with a gap down at 26994.95 and closed lower at 25386.8 after forming a low of 25370. The pattern formed on daily chart appears to be an Island reversal and has a bearish implication. It has crucial support at 26231 and 26110 and resistance at 26684 and 27043.
The day traders can sell it below 26573 with a stop loss of 26712 for the target of 26235 and 26135.
The positional traders can buy it at 26115 with a stop loss of 25888 for the contra-trend rally with an expected target of 26680. This is a high-risk trade and I am attempting to trade expected support level from where the corrective rally can begin although there is no conclusive evidence of it yet.
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