Thread by @niki_poojary

#BANKNIFTY

Outlook for the week April 2- 6, 2022

THREAD: Deconstructing BANKNIFTY on 4 different TF's

#BANKNIFTY
1. Monthly TF:

• Though the month of April started on a good footing however, as we approach towards the end of this month a huge wick on the upside indicates sellers dominance

• Bears utilized the upmove to sell

#BANKNIFTY

2. Weekly TF:

• A clear structure of LH-LL in place

• The current week candle O&C in below PWC

• Thursday upmoves are due to short covering & not due to fresh buying and this is evidenced by lack of support on Fridays (check 21-22 & 28-29 April)

#BANKNIFTY

3. Daily TF:

• BNF couldn't sustain > 36600 in the past week

• On Friday, we witnessed a bull trap as BNF sustained >36600 before the sharp fall at 2pm consolidation

• It was a classic BO failure reversal pattern

#BANKNIFTY

4. Hourly TF:

• 36.6-36.7K strong resistance for the current week, expecting CEs > level to go to 0

• 35.5k zones is the immediate support

• Tomorrow we might open gap down

• Need to wait for the 1st 15min candle

• S/R mentioned on the chart

#BANKNIFTY

• No strategy for now, as we'll witness a gap down and need to wait & watch the first 15min candle
- to see if there is a follow through selling
- or reversal from the gap

#BANKNIFTY

• This is gonna be a truncated week as Tue is a market holiday

• Wednesday night we have FOMC meet, Indian markets will react on Thursday morning

Conclusion:

• Since 36600-36700 was a bull trap, looks like that level would be difficult to be taken out until this expiry

• 35500 is the reversal which we witnessed last Monday on gap down, if that level is broken then more pain on the downside

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I regularly share weekly outlook on indices (NIFTY & BANKNIFTY) and many more threads on trading & finance.