BankNifty Update For Jun-12, 2020

As expected today's expiry was fiery one! Once Banknifty broke 21100, it achieved our target of 20700, making a low of 20525. Yesterday's RSI level of 60 and a inside bar was one of the clues for such a move possibility. Also, VIX constantly suggesting down bias as there is no fall in VIX with upmove and rather we see an increase in its value.

There is a strong possibility of reversal of the trend and we may see a sharp down move in the coming days/weeks. This confirmation will happen only when Banknifty breaks 20300 levels.

The daily chart shows Banknifty still holding 20400-300 zone. If it opens the gap down below 20300 then we may get a good down move towards 20000/19700/19500/19000.

The hourly chart showing MACD crossing zero which is a strong bearish signal. Bearish MA crossover worked well. Below 20300, supports are 20100/19700/20450/19000.

F & O Data:

Banknifty spot to future discount is 16 (changed from a premium of 19 yesterday, change of -35 points). OI spurts data shows a 40.6% change in OI. Future OI decreased by 6%, suggesting long position unwinding.

India VIX:

Keep a close watch on VIX. It is likely to move up sharply in the coming days.

Trade Plan:

Global clues suggesting possible BIG Gap down opening tomorrow.

Below 20300 targets are 20100/19700/19500/19000

The above 20700 targets are 20900/21100.

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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