Bank Nifty EOD Update Feb 6

Bank Nifty started new time cycle with Gap Up opening at 20307(100+ points) and moved further up to 20462. But corrected to low of 20298, but recovered to close at 20371. So Bank Nifty did not fill Gap up level and closed above Gann level of 20364.

Bank Nifty 15 min chart shows RSI level of 50 as support and 80 level as resistance. So we may see further upside move as RSI is bounced from 50 level. Also MACD is showing reducing downward momentum. RBI monetary policy meet is on Feb 8 and till then market may move up in this manner (Up move and then small correction and then again up move).

Bank Nifty closed just above above 20364, Gann level, and hence Gap up opening is likely tomorrow. Bank Nifty may face resistance at 20576, TOP of Sep 07, 2016. If it cross that, Bank Nifty may reach 21000 in this week.

Bank Nifty Invert Chart:

Our mind is more comfortable seeing down movement and hence Invert chart gives some better understanding. Bank Nifty is moving along Upper BB (here it is lower BB) and may continue to drift along it.

On Daily chart MACD is continue to show upward momentum. RSI is yet to reach reistance level of 80. So Bank Nifty may continue its upward move.

Inside Pitchfork:

IP showing break of upper 0.5 SD line and Bank Nifty may move towards upper 1 SD line level of 21000 in coming days.

We may see Bank Nifty moving up till FEB 9-10 before some major correction sets in. We have PSU banks results scheduled on Feb7 (PNB/IDBI) and Feb 10 (SBI). So Bank Nifty will react to the result outcomes.

Comments

VIX Analysis

The daily VIX chart shows the formation of Doji candles at the bottom and reversal. The daily RSI crossed the previous resistance level of 40. The MACD signal gave bullish crossover suggesting bullish move in VIX. So the daily chart shows the possibility of VIX moving towards 28 levels in the coming days. The weekly chart shows the formation of wedge and reversal from the bottom. VIX may move towards the upper wedge line @ 29-30. So VIX suggesting the bearish mood of the market and hence the high possibility of fall in Nifty-50 and Banknifty in the coming days/weeks. VIX Gann Box: The daily Gann Box shows a reversal from the mid-zone of time factor points. The next time factor date is Jul-21. So will VIX continue to move high till Jul-21 or it will reverse from angle point? Wait and watch. Using VIX to spot Intraday Reversal on Indices: VIX is a very useful indicator to spot reversal during day trade. If the price of an index moves up and @ resistance zone watch values of VIX. If VIX s...

Intraday Index Options Trading by Degree Gann Number System ! E-book available on Amazon - Download FREE!

For the next 3-days, E-book is available FREE for download! Take advantage of this promotion. Requesting to write a review on amazon. Download link:- https:// amazon.in/dp/B09DHFS5KJ

BankNifty Update For Jul-09,2020 - Weekly Expiry

Banknifty opened Gap up @ 22700 and then achieved all our bullish targets of 23900/23000. But the upmove was very choppy and looked like terminating pattern and was not easy to trade. So I did not take a trade on the upside. My observation was Banknifty good up (250-300 points) while Nifty was not at all moving up and was just 10-15 points up and VIX was increasing. That was a signal that there is a high probability of reversal. (I twitted this around 12.30 pm). Banknifty continued its upmove and VIX was not falling, so I was sure that reversal is on the card from the strong resistance zone of 23900-23000/50. In yesterday's post, I mentioned about daily RSI @ resistance. That was another reason I was expecting a high probability of fall after it moved higher levels to come to at least yesterday's close levels or below. I got down-trade from almost 23000 to 22700 (got out earlier as it was intraday and not much time left though I was expecting at least 22600. It gave a much lowe...

MoneyNaad

Search This Blog