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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Vinay Agrawal will not accept any liability for loss or damage as a result of reliance on the information contained within this tool including data, quotes, charts and buy/sell recommendation. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Future and options trading on margin involves high risk and is not suitable for all investors. Before deciding to trade in Equities, Commodities, Currency, Derivatives or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.