BankNifty

[Nish]

A) As posted in 21Dec chart, once BN stayed abv 30302 lvl, then it was a sure move upward due to short-covering by call writers at 30000 and it weakended confidence of even 30500 call writers !

After stability around 30302, it was easy trade in:

1) 24Dec 30300CEs (Low 30 and High 268)
2) 31Dec 30400CEs (Low 187 and High 436)

which gave sufficient profits !

May try same 31Dec 30400CEs again, if market permits !

B) On 60m chart it looks bullish and If BN again stays abv 30029 then Fibo lvl 30790 plus may also come, .. But this upward BN move has some resi around prvs gap at 30640 and then DC high at 30945 !

C) But beware about daily RSI and MacD, which sre still in BEARISH mode which started after 21Dec sharp correction.

D) If bullish BN momentum decays and slips below adjusted Fibo zone of 30290 to 29950 on CB , then a sharp retracement mentioned in prvs chart towards 29180 to 28878 , may be posible.

E) Though it is rare, but more bearish momentum can take BN towards 28333 to 28240 zone !

Note: BN is in broader range of 28350 to 31150. More comments on the chart.

View is strictly for STUDY PURPOSE !

 

[Nish]

Perfect BULLISH moves and trades .
As expected in last post filled-up BN gap around 30640 and facing some resi around DC high 30945.

Will be watchful about retracement levels at 30380 and 29950 for any long tardes !

View strictly for STUDY PURPOSE !

 

[Nish]

BN crossed DC high 30945 today and also crossed upper side of broader range at 31150 and may be in a hurry to reach Fibo level 31564 as posted in 21Dec_EOD chart.

Note: Staying abv 31564 may open gates for 32022 as shown in the same chart, which may be hard but NOT imposible.


BN 31Dec 30400CEs fantastic run from low of 132 (23Dec) to todays high of 998.

Do not know if in next 2 days, call-writers will pop-in to eat such a high premium or call-winding at 31500 will happen ! .. Because momentum is too high to digest fro both bulls and bears !
But market and PCR approaching fast towards TOO MUCH OB position !!

Now Seen may change only below 29433 to 28888 range in reverse gear !

Till then Price Action says - TREND is FRIEND !

View strictly for STUDY PURPOSE !

 

[Nish]

Due to very fat premium of 1000 of BN 31Dec 30400CEs , shifting position to 31400CEs also showing good run-up:

Today 31Dec 31400CEs from low of 130 to high of 242 !

Caution: Only 2 days left for the expiry, so Time Decay may restrict the upside in this 31400CEs !

The Chart explains , why many experts are expecting 32500 plus level in coming days !

View Strictly for STUDY PURPOSE !

 

[Nish]

At last Nfty shown 14000 plus level today ! .. Fantastic !

BN is very un-staedy ...
But more interesting is BN 7Jan 29500PEs:

Prvs cl was 44. Todays open was 39 and todays high is 60. Now around 35 !

Again same trade ? .. May be ! Since BN is broadly in uptrend , .. so SL is must for such trades !
Volatile BN can not be trusted for too long !


BEST LUCK and Happy New Yeat to ALL !


View Strictly for STUDY PURPOSE !

 

[Nish]

Today market in general and BN in perticular gave opportunity of profitable trades in PEs and CEs both !

07Jan 31000PE was fantastic, low 109 and high 416 ! .. But grabing only 135 points was posible !

By the way - as mentioned in prvs post, 07Jan BN 29500PEs averaged around 22, gave good chance to exit in profit ! High was 44 !
But slipped to 10 afterwards.

View Strictly for STUDY PURPOSE !

 

[Nish]

BN broader range for this week may be :

UBB around 31650
LBB around 30650

ATR is 550 points , so that should act as SL for Short or Long position.

Unless and until this range is not broken on either side, range-bound moves expected .

The chart shows Bullish or Bearish break-out range for this expiry.


View Strictly for STUDY PURPOSE.

 

[timepass]

What period are you using for ATR ?

 

[Nish]

ATR 14 period on daily chart ! .. + / - 50 points for adjusting whip-saws !

 

[Nish]

Interesting day !

BN moved in a range , more or less exactly as mentioned and shown in the chart posted !

30935 to 31767.

Not sure, but a posible upmove tommorow first half ?

Also as prvsly mentioned in one of the post, BN trying the range:

30000 to 31000

30000 to 32000

and like-wise. If no major correction sets-in, then the logical range could be :

30000 to 35000

30000 to 40000 etc.


View Strictly for STUDY PURPOSE !