BankNifty Update for Jun-29, 2020

On Jun-26, Banknifty traded in a range of 21800-21300. The daily chart shows the possibility of formation of a wedge structure. The bearish divergence on the MACD histogram reinforces this wedge possibility. So we need to be cautious on the upside.

The top made on 24-Jun was exactly 60 trading days (and 92 calendar days) from low made on Mar-24. It suggests a trend change possibility with Jun-24 as a top. The Low made on Mar-24 was exactly 60 trading days from Top made on Dec-30, 2019.

The Hourly chart shows a bearish MA crossover. The banknifty is now consolidating in the range after crossover. This increases the possibility of down move or further consolidation in the range of 21800-21300 before any big upmove.

Gann Box:

The daily gann Box shows a strong resistance zone @ 22000-22200 and support @ 20700-20400.

FNO Data:

Future OI reduced by 6% suggesting short covering, but a huge discount in the spot to future price (130 points) suggests bearish sentiments.

Trade Plan:

Above 21800 targets are 22000/22200

Below 21300 targets are 20950/20700

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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