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 Update Feb 15

Bank Nifty today move down sharply after opening Gap up and making Top of 20368 just near Gann No 20364 and reversed sharply making Low at 20115 and closed at 20163. It seems wave B is completed at 20368 and wave C is started (confirmation only when Bank Nifty crosses 20000). We may see bank Nifty moving sharply to 19700/19500. Daily chart shows RSI crossing 70 level from top that shows possibility of down move. Also Bank Nifty broke lower channel lines (Blue as well as Red). So Bank Nifty may fall sharply in wave C.

BanknIfty Update for Jul-15, 2020

Banknifty opened Gap Down and continuously moved down. In the last 2 days, it almost falls more than 1200 points. We are able to capture this move from almost the top of 23000. The daily chart shows Banknifty took support at 30-EMA levels. MACD signal gave a bearish crossover signaling possibility of further fall in the coming days. RSI @ significant levels of 50. Break of 20900 could lead to a sharp fall towards 19700/19500. On the hourly chart, the MACD signal gave bearish crossover yesterday, and we saw a good fall in Banknifty. Gann Box: Weekly Gann Box shows Banknifty exactly changed the trend from the time factor zone. Also, the weekly opening was near the angle and it reversed after hitting angle and gave a good fall. It signaling a bearish trend for the coming weeks. On the daily Gann Box chart, we can see today Banknifty opened near angle, hit angle, and reversed sharply giving good down move. FNO Data: The future OI decreased by 7% signaling short covering with fall. The spot

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