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Banknifty Update For May-22, 2020

As expected Banknifty moved up and made high of 18200. It then reversed and made low at 17658. So this rangebound move between Gann Numbers 18300-17600 is continued.


Today's candle on the Daily chart is a bearish candle. Tomorrow will be crucial to watch, how Banknifty gives weekly close. Next week is truncated week as Monday is a holiday, so we have extended weekend and only 3 days to Monthly expiry in the next week.

The Banknifty Jun & Jul expiry futures are at a high discount to spot price (90 and 87). Yesterday Jun expiry future was just at 3 point discount to spot. Also OI spurt data shows an increase in Banknifty OI at 43%. This signals the possibility of shorts built-up in Banknifty.


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