MoneyNaad

Bank Nifty was volatile today due to Monthly expiry and moved up sharply in last 30 minutes of the trade. It opened minor Gap down and moved further down making low of 21339 but sharply moved up towards 21500 level. It found strong resistance in 21500 zone through out the day! But moved sharply up in the end of trading session making all time high of 21696 and closing at 21620. Most of the traders/technical analyst was expecting this sharp up move once Bank Nifty crossing 21500 as there was huge concentration of call options written at strike price of 21500. Once 21500 was taken away due to up move in the HDFC Bank that having highest weightage in Bank Nifty, short covering led to sharp rally of 200 points in Bank Nifty. The 21500 call option was available at Rs 7-10 at 2.50-2.55 pm, by 3 pm it was trading at Rs. 120. A jump of 12-18 multiples. A small investment of Rs. 1200/- (Purchase price Rs 10/-, 120 nos of options) would have became Rs. 14400/- in a span of 10 min. Risk

Bank Nifty opened Gap up and moved up making all time high at 21418 closing at 20391(all time high closing). Chart shows Bank Nifty broke previous high of 20334 and also closed above it. Hourly channel resistance is around 21500 while bigger channel resistance is at 20650. Inside Pitchfork: IP showing Bank Nifty breaking out of it signalling Bullish move in coming days. Tomorrow is Monthly F & O expiry. Hence, volatile move can be expected. Gann Time Analysis: Since Bank Nifty broke the high of 20334, it would be safe to assume that low of 20423 should remain protected for coming few months. Read here https://optiontradingcafe.blogspot.in/2017/03/bank-nifty-for-week-starting-mar-27.html Tomorrow above 21415 target is 21510/21600. Below 21365 target is 21270/21170.

Bank Nifty opened major Gap up 172 points at 21229 and closed at 21225 making low/high at 21145/21264. It formed Doji candlestick on Day chart as opening and closing are almost equal. Hourly chart shows Bank Nifty is moving within a upward moving (Big Blue color) channel making higher tops higher bottoms and hence trend is still Bullish! 5 min chart shows that post making day high at 21264, Bank Nifty is in correction. Wave A/B of correction completed at 21181/21249. Target for Wave C is in the range of 21170-21140. Bank Nifty may continue its up move post completion of correction. Market also awaiting GST bill passing in the parliament. Tomorrow above 21250 target is 21350/21460. Below 21200 target is 21100/21000.

Dow Jones is now near crucial level of 20400. Breaking 20400 may push it down to 20000/19700. Index is bouncing from 20400 level (Low was 20413- Market is open). I mentioned in my early posts about resistance at 21100 and reversing to 20400 level. On Inside Pitchfork, Index is bounced back from lower 1 SD line. Breaking this line will be strongly bearish for Dow Jones and it may break down to 19700.

Bank Nifty today moved within range of 200 points and was volatile due to uncertainty of US market reaction today to failure of Health bill passage on Friday. It opened minor gap up, made high of 20179 and corrected sharply making low of 20979. Bounced back to 20138 and finally closed at 20156. Prices need to break parallel(brown) channel for next trend to emerge. Till then it would be range bound movement within channel. Today again Bank Nifty closed below 21100 so possibility of further down move tomorrow is high. Tomorrow above 21080 target is 21170/20276. Below 21030 target is 20940/20820. Inside Pitchfork(IP): IP is showing that Bank Nifty is facing resistance at 1 SD upper line. Breaking 1 SD upper line will be breakout for Bank Nifty and index will move quickly to 21800/22500. Breaking 20400/20350 will be bearish and can lead to 19500.

Last week Bank Nifty corrected to low of 20757 and bounced back quickly closing at 21122 above 3 digit Gann No 21100. As long as 21100 is held Bank Nifty remains bullish. The low made in the week of Feb 27(52 weeks from major bottom of Feb 29, 2016) on Mar 3 at 20423 and  high made in the week of Mar 14 (Mar 13 was holiday- 26/27 weeks from top of Sep 7, 2016) on Mar 17 at 21336 are still protected. Hence, until one of them is taken out we consider range bound movement. Breaking 21336 target is 21800/22500. On downside breaking 20423 may take Bank Nifty to 19700/19000. Gann Time Analysis: Mar 26 is 90th day from bottom of Dec 26, 2017. Hence, we may see good impulsive move tomorrow(Mar 27). New major solar cycle is started on Mar 22 and we may see a trend emerging this week for next few months. Tomorrow above 21150, target is 21250/21350/21400. Below 21100, target is 21000/20940/20800.

Dow Jones corrected sharply on Mar 21. In my previous posts I mentioned about importance of 21000 level for Dow Jones and possibility of strong resistance at that level. Inside Pitchfork is working beautifully on entire move post vertical rise after US Election results. Index reversed from 1 Standard Deviation(SD) upper line making Top and today bounced from 0.5 SD lower line(Market is open right now). Break of 20400 on daily closing will be bearish for Dow Jones. It will be interesting to see impact of new major solar cycle started on Mar 22.

Bank Nifty opened Gap up and mostly traded in positive zone throughout day closing at 20895 on weekly expiry day.   Daily as well as hourly chart shows closing above middle Bollinger Band. Bank Nifty also bounced from lower line of (brown) channel. So a wave might have completed and up move started from low of 20757.  A daily close above 21100, it may again start up move towards new high. Breaking lower channel line may open possibilities of further correction to 20400 level. Tomorrow above 20920, target is 21010/21110. Below 20870, target is 20775/20680

Bank Nifty opened 200 points Gap down and further corrected making low of 20757. So start of new major solar cycle gave impulsive move. Daily chart shows Bank Nifty closed just below lower line of channel and further correction to 20400 level is possible if it does not enter channel again. Also it is just below middle BB line, again a negative signal. RSI is near 54 and it may touch 50 before any up move or if it cross 50 level then further downside is on the card! For last few days I  am mentioning that day close above 21100(3 digit Gann No) is bullish for Bank Nifty and day close below 21100 may push Bank Nifty to lower levels. Yesterday it closed below 21100 and today fell more than 250 points. So Gann levels play very important role as support/resistance. Today it opened Gap down at 20815 near Gann no of 20819(5 digit Gann No). Tomorrow above 20805, target is 20900/21000. Below 20757, target is 20660/20565

Bank Nifty corrected today and low made was 20967, closed at 21019. Daily close below 21100 is bearish signal though Bank Nifty closed above psychological level of 21000. The possibility of completion of correction is high as Index bounced back from brown channel line. If so we should see sharp up move in next 2-3 days towards 21500/21800. Tomorrow above 21050 target is 21140/21240. Below 20990 target is 20900/20800.  Solar Cycle: New major solar cycle is starting Tomorrow (Mar 22) . Hence we may see some sharp moves in 2-3 days.

Bank Nifty opened minor Gap Up at 21202 corrected sharply on opening and made low of 21083. Whole day it was moving in a very narrow range of 21150-21100. Gann No 21100 provided strong support today. Also day closing was above 21100(21110), keeping overall trend bullish. Tomorrow above 21135, target is 21230/21250. Below 21085 target is 21000/20970.

Bank Nifty opened Gap Up at 21189 last week responding to UP election results but did not move much throughout week and closed at 21175 forming Doji on weekly candle. Bank Nifty closed above 21100 (3 digit Gann No). Also it is closed at all time high on weekly closing! Weekly chart shows breakout and if sustained above 21100 can achieve target of 21800/22500 in coming week. GANN ANGLES: Bank Nifty is above Weekly 45 degree Gann angle, confirming Bullish Trend. Target by one of the Gann methods (7x Base) is 20743. So we may see Bank Nifty achieving this target in ongoing bullish trend before any major correction/sideways move. GANN Time Analysis: Week starting Mar 6 was 26th week from top of Sep 7, 2016 and week starting Feb 27 was 52nd week from major bottom of Feb 29,2016. Hence we expect possibility of mid term top/bottom around these dates. So possibility of low formed on Mar 3 at 20423 may be mid term low or high formed on mar 17 at 21336 may be mid term top.

Bank Nifty opened Gap Up though most people expected a Gap Down on Fed Rate Hike news! Bank Nifty moved in very narrow range due to weekly expiry, but overall mood seems Bullish as it made all time high at 21289 and also closed at all time high closing at 21249. The FED rate hike was priced in and dovish commentary from Fed helped market to continue its Bullish trend. As long as Bank Nifty stays above 21100 on daily closing, it has target of 21800/22500 in coming days/weeks. A weekly close above 21100 is strongly Bullish! Tomorrow above 20276 target is 20400/20450, below 21225 target is 21100/21000.

In Yesterday's post I mentioned "Tomorrow Bank Nifty may move in narrow range and protect today's Top/Bottom awaiting Fed rate decision" Bank Nifty behaved exactly that way forming Inside Bar on candlestick. On Hourly chart Bank Nifty took support on 18.75 degree angle and bounced up and again came to angle line. From Gap Up move on 14th Bank Nifty is moving within 2 angles(26.5 and 18.75). Tomorrow morning Bank Nifty may open Gap Down if Fed hike rate(i.e. almost certain). But as we saw on several occasions, Index gives knee-jerk reaction to bad news and then recovers immediately. So we can see similar behavior tomorrow. Bank Nifty may be volatile tomorrow due to Weekly expiry.

As expected Bank Nifty opened major Gap Up of 462 points at 20189 and made high of 21274 and then retraced to make day low of 21059 and closed at 21102. Daily chart shows, Bank Nifty broke the upper line of blue channel within which it was moving for last 3 weeks. Bank Nifty closed above 21100 that is 3 digit Gann no, hence bullish for Bank Nifty. As long as it close above 21100 on daily closing basis view is bullish on Bank Nifty for target of 21800/22500 in coming days. Angles on Hourly chart shows Bank Nifty reversed from 26.5 degree angle and find support at 18.75 degree and bounced back. Tomorrow Bank Nifty may move in narrow range and protect today's Top/Bottom awaiting Fed rate decision and may react in Thursday morning to news!

Last Weekly post I mentioned   " This week is important week as per Gann Time Analysis. This week is 26th from Top of 20576 made in Sep 2016. Also Last week completed 52 weeks from major bottom of 13407 made in Feb 2016. As per Gann Time Analysis these are important weeks for making Top/Bottom/Reversal. Hence, a Major mid term Top/Bottom can be expected this week that should be protected for few months. The reversal of Sep 2016 was 27 weeks from low of Feb 2016." The UP election results may provide us mid term bottom in last week or mid term top this week. Tomorrow we will see a Strong Gap Up(500-700 points) but we have to watch whether market moves up after that big gap up! It is very likely that Bank Nifty may reach 23300 in coming weeks or probably by Mar 22 when new Solar Cycle starts. Bank Nifty is moving in 180 degree 18300-20400-23300. It sustained very well for last few weeks above 20400. Hence, 23300 is target is looking possible with UP election res

Bank Nifty again moved within range on the weekly expiry day, but closed above 20710 Gann no after almost 3 days reversing from that level. This looks like signal for Big Up move tomorrow as Exit Polls also predicting overall good performance by BJP in most of the states and also in UP. If it opens Gap up above blue channel within which Bank Nifty was moving for last 3 weeks then we can see big up move breaking 21100, will take it to 21800 in next few days. It would be interesting to see whether this week provides mid term Top/Bottom as this week is 26th from Top of 20576 made in Sep 2016. Also Last week completed 52 weeks from major bottom of 13407 made in Feb 2016. (I mentioned about this in my weekly post) optiontradingcafe.blogspot.com/2017/03/bank-nifty-for-week-starting-mar-6.html In case market does not open major gap up then it may again remain in range bound till Election Results and/or outcome of US Fed meet on rate hike.

Bank Nifty is trading in a range for last 3 weeks awaiting outcome of Elections across various states and especially UP. Tomorrow after 5.30 pm Exit polls will give some picture about outcome of these elections. Market will react to these Exit polls on Friday! Strategy for this scenario can be as follows for option trading by buying options: Buy Put and Call weekly options expiring Mar 16 in equal lot of strike price almost 400-500 points away from spot price of Bank Nifty at around 3-3.15 pm tomorrow. The premiums will be on higher side due to increase in volatility(that's not favorable to buyer of options).  On Friday Bank Nifty likely to open 300 points Gap Up/Down. In that case The option where Index move is favorable may become 2.5-3 times of purchase price while other side option may fall to 0.5-0.25 times of purchase value that should be exited as soon as market opens for trade. But one will get Net profit of 50-100% of capital invested. The option premiums wil

Bank Nifty opened Gap up at 20548 and reach our first target 20710 and made high of 20727 within 20 minutes of start of trade. It reversed from high level and traded whole day in a very narrow range of two Gann nos 20710 and 20591. Reversed exactly from 20591 and closed at 20663. Tomorrow breaking 20687/20710 on upside, target for Bank Nifty is 20819/20940. Braking 20640/20591, it can reach 20480/20424 on downside.

Dow Jones made high of 21169 and now facing resistance. I mentioned in my post on 16/02/2017  "Post start of Minor Solar cycle on Feb 4, it is again moving up in very sharp manner and already crossed Gann level of 20400. It may reach 21100 in next few weeks as long as it holds 20400. It may face strong resistance at 21100" . Now sustaining above 21100 is challenge for Dow Jones as it is reached near Monthly trend line resistance  that acted as strong resistance from start of year 2010 and Dow Jones never able to cross it. If it could overcome this resistance then we may see a sharp up move towards 21800/22500. Otherwise it may move sideways or downward towards 20400.  

Gann Time Analysis This week is important week as per Gann Time Analysis. This week is 26th from Top of 20576 made in Sep 2016. Also Last week completed 52 weeks from major bottom of 13407 made in Feb 2016. As per Gann Time Analysis these are important weeks for making Top/Bottom/Reversal. Hence, a Major mid term Top/Bottom can be expected this week that should be protected for few months. The reversal of Sep 2016 was 27 weeks from low of Feb 2016. Daily chart shows Bank Nifty is moving in the range of 20400-21100 for last 2-3 weeks. In last trading session it bounced back from support of 20400 and hence it may again try to reach 20900/21000 level in coming week. A decisive break of 21000 and holding it for few days may propel Bank Nifty to further high 21800/22500. A break of 20400 support may take it down to 20000/19700. On Monday break of 20567, Bank Nifty target will be 20710/20819. On downside break of 20471 Bank Nifty can reach to 20364/20250.

Bank Nifty opened 100 points Gap Up but sharply corrected almost 400 points from today's high. High made today was 20905 and low made was 20516. It looks like today's down move is minor wave c of wave(B). Wave(B) is in progress or may have completed at today's low of 20516. Hourly RSI is near oversold zone of 30(34). If wave (B) is completed then Bank Nifty should move up sharply in wave (C). On Daily chart, RSI broke the support level of 65 and that opens the possibility of further downfall. Breaking 20400 may result into some other pattern and may result into further downfall. A decisive move above 21100 or below 20400 will decide the future trend for Bank Nifty.

I mentioned the possibility of Dow Jones touching 21100 by Mar 22 in my post on 16/02/2017 "Post start of Minor Solar cycle on Feb 4, it is again moving up in very sharp manner and already crossed Gann level of 20400. It may reach 21100 in next few weeks as long as it holds 20400. It may face strong resistance at 21100" .   https://optiontradingcafe.blogspot.in/2017/02/dow-jones-and-gann-nos.html Dow Jones touched 21100 today! Will it sustain above 21000? If it is able to hold 21100 then it may soar to 21800 soon.

Bank Nifty opened Gap Up at 20698 and moved higher to 20833 but faced resistance in the zone of  Gann No 20819. I mentioned in yesterday's post " Bank Nifty 15-min chart is showing that corrective wave is terminating possibly in Ending Diagonal/triangle pattern and RSI is showing divergence. Correction may near completion or completed at 20560. " Bank Nifty started wave on upside post completion of correction at 20560. Move above 20819 and holding 20819 may take Bank Nifty to 21000/21100 Tomorrow though it may close below 21000 due to weekly expiry as huge call writing is done at 21000 strike price.