Downsizing channel on BankNifty

BankNifty had been the outperformer in the last rally since 2011 but now it seems it would be an equal partner for underperformer in the coming future. Overall sentiments in the markets have turned bearish after the sell of on Friday. Even the global markets had seen sell off on late Friday giving a sign of weak opening tomorrow. If we look at the long term chart of BankNifty, than we had seen a rally from 9940 to almost 21500 which hasnt corrected yet enough to move further and my analysis suggest correct has begun. But as we have more traders so i had to watch the chart closes from Daily period. As we could notice in the chart, index was trading in the downside channel and it has almost breached on Friday. As we expect a gap down tomorrow, this channel is also breached and we could see downsizing channels on BankNifty daily chart which support my weaknening markets. 18346 is the 100 day average which has crossed 200 day average at 18542 for bearish crossover giving a selling idea for the medium. The crossover has been confirmed as the index is trading below the crossover and both the moving averages. As the expiry week kicks off tomorrow, i am expecting a short covering this week but use this as a opportunity to square of your longs and short new trades for next expiry. Stop loss would come at 18850 which is the resistance line of the channel. GST bill and Rate cut are the only trigger which could give some chance of reversal but it has very nuch thin chance to cross 18800 in near future. So overall the index seems to be weak in medium term. Sell rise is what i recommend