BankNifty Update Jun-4, 2020

After making Gap up opening and sharp upmove towards our target of 21300, Banknifty moved much higher to 21619 but reversed very sharply in last hour closing @ 20940.

As I mentioned in yesterday's post Jun-3/Jun-4 are very important dates. If we take a look at today's candle it very much resembles the reversal candle made on Apr-30. It reversed from the resistance zone of Mar-27 and Apr-30 tops. It also shows the possibility of the H&S pattern if Apr-30 high is not taken out. Tomorrow's session is important (Jun-4) can set the tone for the next move.

Observe the BIG Divergence in the MACD-Histogram line indicator on the hourly chart. It has more importance as Banknifty reversed from the resistance zone.

Gann Box Daily chart showing reversal from resistance and bearish Doji candle

Weekly Gann Angles:

Resistance at Weekly angles and reversal.

India VIX Daily Gann Box time cycle date is Jun-4

So most of the setups are showing reversal from the resistance zone and hence the high probability of top is made today considering time cycles matching with the same.

Comments

Bank Nifty for Week Starting Jan 16, 2017

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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.

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