BANKNIFTY [5th October 2020]

There is a fair chance of the index retreating a little to try and close the gap-ups for a number of reasons. However, technically, the Stochastics is at extremely overbought zone and 22400 is a tough one to breach.

LONG, if index sustains above 22400 for targets of 22750-23090. Any weakness at 22400 should be a signal to short.

SHORT, if index fails to sustain above 22400 for targets of 22030-21800 (one week's average @ 21650, which will be pulled up by the gap up opening expected today).