Bank Nifty closed below its prior swing low; what next?

Bank Nifty futures volume indicates massive selling pressure.

On Thursday, Bank Nifty declined by a humongous 722 points or 2.17 per cent. With this sharp fall, it closed below its prior swing low, which was last marked in mid-May. However, an interesting point to note here is that though Nifty 50 made a fresh 52-week low, Bank Nifty did not log a 52-week low. 

On the fourth trading session of the week, it opened with a gap-up, and thereafter, the bulls succumbed to the bears' attack. As a result, Bank Nifty closed near its day’s low. 

Bank Nifty futures volume indicates massive selling pressure. As it declined below the prior low, every indicator shows strong bearish signals. There are no divergences visible now. The next swing low is placed at 32,155, which may hold for this week. Expect another day of weakness and avoid long positions at this juncture. 

Overall, the trend remains in favour of bears and until & unless, Nifty manages to close above 33,050 levels, sell-on-rise would be the apt strategy for traders.