Banknifty Update May-20, 2020

In yesterday's post, I mentioned that Banknifty may remain rangebound in 18000--17200. Today it opened Gap up @ 18037, immediately come down to 17600 levels, our Gann No and again gave good up-move making day high @ 18175 and then again back to 17600, broke it, made low of 17390. It eventually closed @ 17486. So it behaved exactly in the range as we expected, giving good opportunities for trading.

On the daily chart, MACD is clearly showing the breakdown. In this entire retracement upmove, MACD did not cross the "0" level and now gave bearish crossover. Similarly, RSI was rangebound in the 40-50 zone during retracement move. Now it also broke 40 levels.

Breaking 17200 levels will give us a target of 15000 levels in the coming weeks, near our next important Gann Number for Banknifty, 15100. In the Month of May, Banknifty opened near Gann Number 20400, achieved the next major Gann Number level 17600. So now the next target as per this system is 15100. So let's wait and watch.

The hourly chart is showing that today's price reversed from the Neckline zone of the H&S pattern. Also observe "Bullish Divergence" in MACD Histogram (shown in line form), which suggests possible upmove on the hourly time frame. I am expecting a rangebound move for the next 1-2 days within the channel(brown color) shown.

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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