Bank Nifty Bulls hold time cycle low for a small rally,EOD Analysis

By | January 4, 2018
  • As Discussed in Last Analysis  Bank Nifty opened with gap up above 25400 also failed to give trending move  low made was 25300 so 25250 was protected again again bulls got whipsawed above 25400, Last 2 days have been very taxing for traders and mental strength is tested, eventual rewards after this sideways move will also be rewarding. Till time cycle low of 25250 is held bulls have upper hand. Bullish above 25400 for a move towards 25510/25770. Bearish below 25250 for a move towards 25120/24951.  Nifty bulls finally got rewarded holding 25250 and once 25400 broken we got the move till 25490 near our target of 25510. Till 25300 low of 03 Jan time cycle we can head towards 25600/25760/25920. Bearish below 25250 for a move towards 25120/24951.  How to deal with Whipsaw in trading

  • Bank Nifty Jan Future Open Interest Volume is at 15.2 lakh with liquidation of 0.16 Lakh, with decrease in Cost of Carry suggesting long positions were closed today. Bank nifty Rollover cost @25671, closed below it.
  • 26000 CE is having highest OI @11.4 Lakh resistance at 26000 followed 25800.24500-26500 CE added 2.6 lakh in OI so bears added position in 25800-26000.

 

  • 25000 PE is having highest OI @7.6 Lakh, strong support at 25200 followed by 25000.24500-26500 PE liquidated 1.2 lakh in OI but still strong support at 25200-25000.

 

Buy above 25500 Tgt 25550,25600 and 25680 (Bank Nifty Spot Levels)

Sell below 25420 Tgt 25350,25280 and 25150 (Bank Nifty Spot Levels)

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