BankNifty Update For May-29, 2020

Yesterday's post I mentioned, that for upmove to continue Banknifty will have to sustain above 19000. It did hold 19000 and done target of 19300 and move more up towards the 50-MA zone near 19500 (Today's top was 19455). It came down towards 19000 but hold this level and eventually closed @19170.

So the probability of upmove towards next Gann Number19700 and Banknifty Gann Degree Number 20400 is quite high. Any move below 19000 can take it towards 18300 and maybe 17600.

The Daily chart shows the price at the resistance zone of multiple MAs (50-MA/30-EMA/20-MA). Move above 19500 may take it to 20400/ 21100 (Upper end of Bollinger Band). Daily RSI @ 50 zones (50.39), the possibility of a good move (either side) is high.

The hourly chart shows price took support @ channel upper line which is also 19000 Gann Number support zone.

FNO Data:

Yesterday there was high discount in Banknifty May expiry futures to spot price, but Banknifty still closed much higher than yesterday's close. Banknifty June expiry future is at 140 points discount to spot. It suggests bearish move possibility in the coming days.

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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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