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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

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