Bank Nifty EOD Update Mar 22

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

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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...

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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...

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