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BankNifty Update for Jun-29, 2020

On Jun-26, Banknifty traded in a range of 21800-21300. The daily chart shows the possibility of formation of a wedge structure. The bearish divergence on the MACD histogram reinforces this wedge possibility. So we need to be cautious on the upside.

The top made on 24-Jun was exactly 60 trading days (and 92 calendar days) from low made on Mar-24. It suggests a trend change possibility with Jun-24 as a top. The Low made on Mar-24 was exactly 60 trading days from Top made on Dec-30, 2019.
The Hourly chart shows a bearish MA crossover. The banknifty is now consolidating in the range after crossover. This increases the possibility of down move or further consolidation in the range of 21800-21300 before any big upmove.

Gann Box:

The daily gann Box shows a strong resistance zone @ 22000-22200 and support @ 20700-20400.

FNO Data:

Future OI reduced by 6% suggesting short covering, but a huge discount in the spot to future price (130 points) suggests bearish sentiments.

Trade Plan:

Above 21800 targets are 22000/22200
Below 21300 targets are 20950/20700

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