0Banknifty opened Gap up 400+ points, and then there was not much of trading opportunity as it was rangebound throughout the day. There is still a possibility of upmove towards 22500/22700, but the daily chart is showing a lack of momentum.
It is interesting to observe that Banknifty did not break the top made on Jun-24 @ 22479 though Nifty-50 made a new top. So there is a divergence in Nifty and Banknifty. It is a sign of weakness unless Banknifty catches with Nifty.
Jul-07 is the Gann date (minor time cycle). It will be interesting to watch whether it breaks Jun-24 high and reverse or continue upmove.
The hourly chart shows consolidation after the gap up. Hence, the possibility of further upmove is strong.
FNO Data:
The future OI decreased by 8% with an increase in price. So normal analysis suggests Short covering. But it looks like long unwinding as we saw longs building the last two days. So we need to be cautious at higher levels.
Trade Plan:
Above 22330 targets are 22450/22550/22700
Below 22120 targets are 21950/21800
I am cautiously Bullish.
