Bank Nifty Trade Setup for 7th October 2022

BANKNIFTY is having a Bearish outlook in the short term with the formation of shooting star candle in daily time frame. We should see a retest of 10 EMA before any pause. Potential for further down move is also present if we get a decisive close below 10 EMA in the daily time frame.


Predictions
Charts : Bearish in short term with shooting star candle in daily chart.
OI Data : Too early in the week to give any indication
FII Activity : Bearish with over 44k net short position being added today.

Verdict :- Expect bearishness in the near future, 10 EMA in daily chart can give support on the downside movement. If broken and closed below that decisively, then we may see a larger down move from here.

Plan for Long positions above 39600 and Short positions below 39240.


Notice the Shooting star candle formation right after the 10 EMA cross over in daily time frame.

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Information shared here is for educational purpose only and is not a recommendation to buy or sell any Stock, Option or Future. Trade at your own risk.

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Price action played out as expected. 10 EMA in daily chart seems to be getting respected and there is a clear bounce back from that. Now we can expect a potential upward movement on Monday, if no negative news comes in over the weekend.