Banknifty had a very strong up-move over the first weekly expiry of March 2019. It gain almost 950 points in 6 trading sessions.
On Friday, some profit booking was expected but every dip was bought into and it remained range bound for the whole trading session and closed on a flat note.
Banknifty continues to be an out performer compared to other indices and is likely to resume the up-move in the 2nd weekly expiry.
WEEKLY BANKNIFTY TREND AND TECHNICAL OUTLOOK:
The Chart above is of a 5-minute interval timeframe. We can observe that at the current scenario, buying is seen coming at around 27650 levels and resistance or selling is happening at 27800 levels.
For intra-day trading, we can be buyers as long as the 27650 level holds decisively for a good gain of 100-150 points.
On a larger time-frame (Daily interval), BNF is now at the cusp of breaking out from its previous resistance of 27750 levels.
This is a very important level because, on a decisive breakout, BNF is likely to head towards the next resistance level very quickly.
Resistance or supply zone can be found at its All-time high of 28370 levels. If it does not hold on to this levels, we can see a breakdown towards 26500 levels in a few trading session.
Looking at the overall scenario, my expectation is that BNF will remain very volatile in this weekly expiry and we are likely to see 300-500 points movement on either direction.
If you are trading with Options, implementing a weekly option long Strangle strategy can probably yield good profits. Please use optimum position sizing to control the risk of premium decay.
[DISCLAIMER: The post above is intended for general information and educational purposes only, not a Buy/Sell recommendation. Please use your own risk management techniques. Any loss incurred from following my personal opinion/analysis will solely be your own responsibility]