The index failed to breach 22400 consecutively for the past two sessions, making it a double top (with 24th June). Today's session witnessed mild (net) buying by the FIIs and selling by DIIs, ultimately closing the day with a small full bodied red candle. This was after a shooting star formed on the previous day. The short term outlook looks negative for banks. However, there is still a chance for bulls to get a grip on the market since the closing did not breach the trend channel.
On gap up, the usual bull rally should resume beyond 22000. Resistances lie at 22250 -- 22400. A breach of today's low upon gap up will confirm an oncoming downtrend.
On gap down, 21900 -- 22000 might be tested once but a slight selloff could lead the index to 21450 -- 20900.
On gap up, the usual bull rally should resume beyond 22000. Resistances lie at 22250 -- 22400. A breach of today's low upon gap up will confirm an oncoming downtrend.
On gap down, 21900 -- 22000 might be tested once but a slight selloff could lead the index to 21450 -- 20900.