Trade with RP 01/10/2021
Don't jump on selling immediately NIFTY 17500 and Banknifty 37000 major support as per option chain. A pullback and consolidation will give opportunity for short.
Banknifty 5 min chart it got 13EMA pullback near 37200 then made shooting star and Marubozu confirmation of fall. Short near 37100 with 37180 as SL for 37000-36800
Risky can go short on Nifty near 17490 with SL 17520 for 17440 its volatile day take care with proper SL per your risk capacity.
Banknifty short suggested at 37100 SL hit at 37180 exit.
Nifty SL hit at 17520.
Nifty expanding flat correction towards 17560-70 which is 0.382 fibonacci level of retracement.
Observation of price near this and rejection candles will alert us for wave 5 fall towards 17370.
Nifty getting rejected at channel top of Expecting it to fall from 17525-30 levels.
Risky can short near it with SL day high 17553 for target 17400-350
Nifty is another Possible bearish flag and pole with triangle and price compression.
This pattern is also looking convincing so if anyone already short intraday can look to book near 17480-70 levels. E wave small bounce can again come.
If breaks below 17455 flag invalid then triangle invalid but fall will continue.
Banknifty bearish view as it was not able to fill gap. Wave 5 of C going down towards 36800-650.
Nifty is most likely to gap down on Monday as it failed to fill the gap created today.
Target downside 17400-350 as wave 5 of C going to extension 0.618 Fibonacci level.
Weekend Homework on Gaps:
Find all days where Gap Up or Gap down happened and then on that day it failed to fill the gap. What happened the next day? What is the success rate of this strategy? Come up with your findings use data from Jan 21.