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 to future premium is decreased to 4 from 83. My observation with the premium for last week is it is playing contra. When there is reduction in premium Banknifty moves up and when premium increases it falls.

Trade Plan:

Above 24540 targets are 21650/21700/21800

Below 21300 targets are 21100/21050/20950

If 20900 breaks then the targets are 20400/20100. 20400 is Gann Degree Number for Banknifty.

I have a bullish bias for the short term if Banknifty holds the 21100-20900 zone. We may get corrective move towards 21800/22000 or one more legs of up move towards 22500. Wait and watch.

Comments

DAX analysis for a client

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Bank Nifty Bigger Time Frame Analysis

I have posted following weekly chart of Bank Nifty in my Dec 15 post. This chart shows similarity in patterns. The pattern started in Aug 2013 and completed in Oct 2016 as shown below: This is "Extracting Triangle Pattern" as per Advanced Elliott Wave (Neo Wave). Ongoing pattern looks similar to Extracting Triangle Pattern and as per this pattern wave D seems to be in progress. After completion of wave D, index will move towards upward channel line(RED) in wave E. Once the pattern gets completed, we should expect index to go below wave D. I am just aware about Neo wave patterns but do not have knowledge about its calculations/counts. In Extracting Triangle pattern, each successive wave in the direction of trend contracts while corrective waves expand (wave A< wave C < wave E, wave D > wave B) It looks similar to Head & Shoulder pattern So possibility of Down move is quite high post Jan 2017.

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