Nifty moved in narrow range in Wedge pattern since last update. Stretched little higher above 11400-11450. Yesterday it attempted to break 11400 supporting trendline but closed higher.
Today 11420 crucial for Bulls to continue this bounce more. Once this 11420 levels breaks and trades below that at least 15minutes, then fresh short selling and long unwinding likely to emerge.
Today Banknifty weekly options settlement, so major price action happens in last hour of trading.
Technical charts in Negative Divergence mode. Hence, eveery bounce is a sell opportunity.
Once this wedge pattern breaks down decisively, nifty likely to break last 3days lows in a single day.
Be prepared for that move.
Resistance trendline 11500-11550.
Supporting trendline at 11425-11320-11265,
As far as possible, book profits in long positions, if any.
- Suryadev Bandari, Research Analyst