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BankNifty Update For Jul-03, 2020

Banknifty opened 150+ points gap up @ 22133, reached our 1st target of 22300. It made top @ 22344 but could not sustain and sharply came down to 21900 levels. After that, it was typical expiry day rangebound move between 21900 and 22250.

The daily chart shows RSI holding 60 levels and the MACD line above the signal line. So further upmove is likely towards 22450-500 (recent top) and 22800-900 towards wedge upper line. But MACD histogram showing a lack of strong momentum in upmove.
The hourly chart shows the possibility of Banknifty coming towards moving averages (21750-21600) before it starts moving up.

FNO Data:

There is not much change in future OI (1%). But the spot to future difference is now @ premium of 24 from the discount of 47, a change of 71 points, suggesting short term bullish sentiments( or at least change from bearish sentiment). Since this is a long monthly expiry month, the premium should be much higher (So it is not strong bullish sentiment).

Trade Plan:

Above 22050 targets are 22200/220300/22450/22550/22700
Below 21900 targets are 21750/21600/21300


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