BankNifty Update for Jun-9, 2020

Banknifty opened Big gap up @ 21636 and immediately hit our major target of 21800 (Top @ 21807). It found strong resistance @ 21800 levels, a Gann Number, and reversed sharply making low @ 20911 almost 900 points down move from the top. It closed @ 21187. So it still hold 21100 levels. For the last 2 days, it was pure Gann Number Play from 20400-21100-21800 and back to 21100.

As I mentioned in yesterday's post, the VIX chart was suggesting a high probability of upmove in VIX value (Double bottom and time factor). So after Gap up and 700-800 up move VIX started increasing instead of falling, it was a clear signal for a down move. Also, Jun-6 was Gann Date and we saw its effect in today's move.

Now, What Next? The following observations will help us to plan our trade for tomorrow.

On a daily chart, RSI shows the possibility of an "M" pattern (Jun-3 and today's RSI are exactly 61 levels-61.32). That suggests the possibility of a down move.

On the hourly chart, MACD is showing bearish divergence, indicating momentum on the upside is reducing. Also, Banknifty is above moving averages support levels. So we can till see upside moves that can be of terminal patterns as shown by lines if 20400-20300 levels support remains intact.

Bollinger Bands are expanding on the daily chart after a long period of contraction. It suggests a big move on the cards in the coming days (No directional view).

Gann Angles:

Banknifty hit the Monthly 45-degree (1/1) angle at the top and reversed sharply. So this top may get protected.

India VIX:

VIX chart shows a sharp upside reversal from Monthly angle

VIX Gann Box suggests possible upmove towards 32 levels where it may face resistance. If 32 levels get broken we may see sharp upmove in VIX in the coming days thereby suggesting sharp down move in Banknifty. So keep watch on VIX.

So for tomorrow possible trade plan:

If 21100 is broken down targets are 20850/20400/20100

Above 21450 upside targets are 21800/22000/22500

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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