BankNifty Update for Jun-17, 2020

Today's move was very volatile. Banknifty opened the Huge gap up, almost 600 points, and made top @ 20638. But could not sustain and fall 1000 points making low @ 19507. It made Double Bottom Pattern on the daily chart and 19500 is a good support zone as Daily MAs are providing support.

The daily chart shows bullish MA crossover on Jun-1 (30 EMA-50 MA, which works well for Banknifty Daily time frame). Now Banknifty again came to MAs (what is called Mean Reversion)

It looks like a wave is completed at today's low that started from the top of 21800 levels. I expect a good upmove in the next few days provided support of 19500 remains intact. Weekly opening @ 20457 i.e. @ Banknifty Gann Degree Number zone - 20400 and Double Bottom Pattern, suggests bullish move. Targets are 21100/21800/22500/23300.

The Weekly MACD gave bullish crossover last week. The weekly chart shows the possibility of Banknifty moving to 22800 where 300-EMA resistance lies and 23700 where 30-EMA lies.

If you observe, in the past 300 EMA played very important support on the Banknifty Weekly chart. Now it may act as strong resistance.

The hourly chart shows a bullish MACD crossover. Also, observe strong bullish divergence in MACD histogram plotted as a line.

So Banknifty looks bullish on all time frames.

Gann Box:

Weekly Gann Box shows we are at the time cycle week. So a directional move is likely in the coming weeks.

India VIX:

Vix Daily Gann Box showing it facing resistance @ major angle. So Vix cools off likely.

F & O Data:

The future OI decreased by 9%, the possibility of short covering. But spot to future discount increased to 42 from 1, which is a bearish signal.

Trade Plan: Swing Trade

Above 20400 targets are 21100/21800/22500/23300

Below 19700 targets are 19000/18300/17600

I have strong Bullish Bias

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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