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 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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