BankNifty Monthly Analysis For Jul-2020

The observation on Monthly Banknifty chart:

The 3 months from the top made in Dec-2019 to the low of Mar-2020
3 months from Mar-2020 ends in Jun-2020. Possible Trend change.

The Mar low to Jun top monthly candle pattern looks like flat A-B-C correction of the wave from the top of Dec-2019. So the further down move is expected.

The banknifty is now near the resistance of the monthly 70-EMA that provided strong support earlier. It may now provide strong resistance.

The 14-period RSI on the monthly chart is @ res level of 40(40.73).

All these points directing towards the high probability of down move towards Mar low or much lower in the coming months.

The 2-Monthly chart shows bearish MA crossover (EMA-14 and SMA-20)

The 3-Monthly chart also shows bearish crossover (9-EMA &14-SMA)

14-period RSI is @ Resistance level of 50

Gann Monthly Angle Chart:

Reversal from Gann Angle.

Gann Box:

The Monthly Gann Box suggesting trend reversal possibility as per time factor (the vertical line of 0.25-1/4th part of Box). The earlier reversal was from 1/8th of Box (0.125 vertical line) in Mar-2020.

VIX :

The monthly angle chart shows a reversal from angle and Doji candle formation which is a reversal pattern. So an increase in VIX is very likely.

It would be interesting to see if it opens at 1/1 angle or take support @ 1/1 angle in the month of July.

The idea behind posting various charts is that all studies are aligned towards trend reversal. So we need to be cautious on the upside.

I have a strong bias for bearish move in the coming months.

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.

MoneyNaad

Search This Blog