Bank Nifty EOD Update Mar 27

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.

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...

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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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