BANKNIFTY [13th October 2020]

The divergence in Stochastics highs recently led to the swift fall in the index, but has also led the Stochastics to an oversold zone. Hard to say which way it’ll go but I am expecting a rangebound movement with a positive bias for a day or two. However, the view will be negated if the index breaches and stays below 23500 (also 1 week’s MA).

LONG, if the index sustains above 23850 for targets of 24060-24200-24500. Ideally one should go long if the index sustains in the range of 23500-23700.

SHORT, if the index breaches and stays below 23500 for targets of 23200-23000-22800. Ideally one should short around 23800 if weakness is evident around that level.