BankNifty - If 17000 Support breaks, then expect HAVOC!

BANKNIFTY

BankNifty is testing it's weekly low support zone it formed since the crash in February. If this level breaks, then we can see a major downside and currently there are no bullish reasons which can help the market move up. We can also expect a dead cat bounce given that BankNifty has made three weekly red candles in a row, but after that we can expect short selling to continue and push BankNifty down (unless some positive news hits the market).

If BankNifty breaks this level, it will almost certainly drag Nifty along with it towards the downside. So even though Nifty is able to hold 9000 level (which may seem to be as a positive sign), we should not be bullish yet and expect market to move down due to BankNifty's weakness.


Daily RSI
Nifty - 35 - Neutral

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