Banknifty outperformed the benchmark index nifty in the budget week due to favorable announcements in the budget speech for the banking and financial sector. Gaining a whopping 16%, traveling from 30560 all the way up to 35650 on the closing bais for the week ended on February 5, 2021. The following week trading range shrunk and the price got traded within the closing and high of the previous week’s big bullish candle suggesting a halt in the trend which can continue upwards. Banknifty formed a perfect dozi candle for the week that ended recently.
On a daily timeframe alike nifty continuous formation of indecision candles are seen. Logical supports come very far around 33000-32800.35400-35350 can act as an intermediate support. All-time highs can be act as a resistance.
On the hourly timeframe a consolidation pattern is seen having 36500 and 35500 as upper and lower level of trading range, respectively.Break on either side can bring back the lost momentum in the index with conventional pattern target of 800-1000 points on the either side.
According to options data for weekly expiry 18feb, 37000 holds maximum call OI followed by 37500 and 36500.Aggressive call writing was seen at 37000 and 37500 strikes indicating a resistance at higher levels.35500 and 34500 strikes hold considerable put OI as well as significant put writing and can act as a good support for current expiry.Options data indicate that room for the upside is open and participant are expecting wild swings in the market after consolidation. Max pain as of now is 36000.
Hope the analysis will help you in upcoming trading sessions.