Bank Nifty EOD Update Mar 30

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 Reward Ratio was extremely high! Understanding Gann Methodology to trade options give you such kind of returns with very low risk!

Now Bank Nifty is reached at channel resistance. RSI on Daily/Hourly chart is also at resistance level. Hence, there may be correction or big break out in coming trading sessions.

Tomorrow above 21645 target is 21750/21840. Below 21596 target is 21500/21400.

Comments

Bank Nifty for Week Starting Jan 16, 2017

Last week Bank Nifty made big up move of 650 points. High made is 18966. It looks like it is ready for further up move. On hourly chart Middle BB line(RED color) is providing support and Index may again move up towards upper line of Blue Channel. The Best trading strategy is now to go Long when Index is bouncing from Middle BB line and Exit when it is near upper line of Blue Channel. Hourly RSI shows Resistance at 85 level and Support at 59 level. So Blue channel along with RSI levels are good indicators for trade. It is not good idea to go short as Up Momentum is strong. If Index breaks Middle BB line then only short positions should be taken. If Bank Nifty breaks 18850/18800 then we may see it reach quickly to 18650/18600. Also it may break RSI support level of 59 for major correction. We may see Index moving along Upper BB line (Blue color) on Daily chart. Index may face resistance at 19150/19200 level. If it crosses 19200 it can reach to 19500/197000. Daily RSI is

Bank Nifty EOD Feb 7 Update!

Bank Nifty is in consolidation/correction mode. Today it moved in a very narrow range and it seems that it is under time correction before a BIG move. It is awaiting RBI monetary policy decision due on Feb 8 and bank Nifty may make Big move on Feb 9 in either direction depending on market's reaction to RBI decision. Bank Nifty 15 min chart shows wave a and wave b completed and wave c is in progress. It may take triangle pattern of correction as uncertainty of event outcome is playing out. It may correct to 20250/20030 levels.

Hindalco - On the Verge of Break-Down?

Hindalco Daily chart is posted below: Daily chart shows prices are facing resistance at Gann level 183 and now prices are near lower band of Bollinger Bands(BB) that are expanding. Hence, a big fall is expected in next 2-3 trading sessions with target of next Gann level 157. Daily RSI is also broke 50 level coming from upside overbought 70 level that signals further fall in coming days.

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