On May 22. Banknifty opened Gap Down @ 17554 and went down to 17424 and then sharply move up making top @ 17952. But could not sustain and fall sharply in the next hour making low @ 17105. After making low it was just rangebound within 17100 and 17350, closing day @ 17278.90.
Below is the Banknifty Weekly Angle chart. The prices did bounce from 45 degrees (1/1) angle zone but the bounce is not much and price closed near angle. That's a bearish signal.
The daily chart is still showing consolidation as MACD/RSI are flat. It did brake 17143 low made on Apr-3, but hold that level on closing basis. So brake of 17150 levels could start downfall or else consolidation may continue.
On the hourly chart price broke the neckline of H&S pattern and again enter the neckline zone and reversed. Now we are seeing resistance at the channel. So It indicates further down move possibilities.
F&O Data:
I mentioned in the last post "The Banknifty Jun & Jul expiry futures are at a high discount to spot price (90 and 87). Yesterday Jun expiry future was just at 3 point discount to spot. Also OI spurt data shows an increase in Banknifty OI at 43%. This signals the possibility of shorts built-up in Banknifty." So we did saw a good fall om May 25.
On May 22, there is a huge increase in Futures OI (28%). The May future is still at a high discount to spot (62.8 points) and OI spurt data @ 59.55%. The future is down by 429 points and Banknifty by 456. All suggesting more short built up in Bnaknifty. Let's wait and watch.
Also on Fri May-29, quarterly GDP data would release apart from Monthly expiry on May 28. The market may remain highly volatile due to these events.
Below is the Banknifty Weekly Angle chart. The prices did bounce from 45 degrees (1/1) angle zone but the bounce is not much and price closed near angle. That's a bearish signal.
The daily chart is still showing consolidation as MACD/RSI are flat. It did brake 17143 low made on Apr-3, but hold that level on closing basis. So brake of 17150 levels could start downfall or else consolidation may continue.
On the hourly chart price broke the neckline of H&S pattern and again enter the neckline zone and reversed. Now we are seeing resistance at the channel. So It indicates further down move possibilities.
F&O Data:
I mentioned in the last post "The Banknifty Jun & Jul expiry futures are at a high discount to spot price (90 and 87). Yesterday Jun expiry future was just at 3 point discount to spot. Also OI spurt data shows an increase in Banknifty OI at 43%. This signals the possibility of shorts built-up in Banknifty." So we did saw a good fall om May 25.
On May 22, there is a huge increase in Futures OI (28%). The May future is still at a high discount to spot (62.8 points) and OI spurt data @ 59.55%. The future is down by 429 points and Banknifty by 456. All suggesting more short built up in Bnaknifty. Let's wait and watch.
Also on Fri May-29, quarterly GDP data would release apart from Monthly expiry on May 28. The market may remain highly volatile due to these events.
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