BankNifty Update For Jun-10, 2020

Banknifty opened mild Gap up but could not sustain and came down sharply to 21000 levels (20983). But again gave sharp upmove towards our first resistance 21450. So we got a good trade from 21100 to 21450. It faced strong resistance in the 21450-21550 zone.

Even though it made good upmove VIX was not showing any sign of cooling down and actually moved up. So it was a clear signal that Banknifty may not cross the resistance zone and may reverse.

Banknifty gave sharp down move making top @ 21568. It was good trade set up below 21400 giving targets 21100 and below 21100, 20850 as mentioned in yesterday's post.

The daily chart shows that RSI made the "M" pattern (I discussed this possibility in yesterday's post) and gave us good downside trade. Daily chart shows, Banknifty facing strong resistance in 21500-600 zone and unable to hold those levels after crossing it.

The hourly chart shows Banknifty crossed moving averages and MA's given bearish crossover. This is 30EMA-40MA crossover that works well for the Banknifty hourly time frame.

Also, MACD gave bearish crossover, suggesting further down move in Banknifty. If Banknifty breaks the support zone of 20400-20300, then we may see a sharp fall towards 19700 (Minor support @ 20100).

If 20400-20300 support is hold then we may see another upmove as shown by lines on the chart.

F & O Data:

The discount in Banknifty spot to future increased from 26 to 47 and the increase in OI is 9%. This indicates Short Build up in Banknifty.

Trade Plan:

Below 20300 Target 20100/19700/19500

If after down move finds support in 20400-20300, then above 20400 targets 20800/21100

Above 21100 targets 21400/21500

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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