BANKNIFTY
The index broke the support area of 22445 thereby triggering a sell signal. The stop on the trade is above 23201. The index has formed what looks like a classical Ending Diagonal and if true then the immediate target for the decline is 17100 and with Ending Diagonals we know that the start of the pattern is retraced completely in less than 50 % of the time and that gives 30th July as the likely target date. Meaning that may witness break of 17100 on or before 30th July.
This seems a far-fetched thing at the moment but our job as a trader and technician is to follow what the prices are telegraphing and hence one has to shut the murmur in the mind and take the trade objectively. The most important thing is the immediate price activity we should witness and hence any sustenance around 23000 or a move above 23201 will be contrary to the desired price action and hence 23201 is the critical STOP on all short positions created.