Bank Nifty ready for a dead cat bounce,EOD Analysis

By | March 7, 2018
  • As Discussed in Last Analysis  Bank Nifty opened gap up once time cycle low was broken we saw the big fall as we expected below 24680. Intraday time for reversal @1:34 also gave us clue as Bank Nifty made high exactly at 1:35 and saw the big decline. We did first target of 24500 and hopefully will do next target of 24250 today. Bulls should protect 24100 today break of same we can see fast decline towards 23600. Bank Nifty does 24250 thus achieving all our target one time cycle low of 24680 was broken, so we were able to capture fall of 430 points in 2 days. Low made today was 24097 so bulls also protected 24100 as saving grace. Bulls should protect 24100 today break of same we can see fast decline towards 23600. Holding 24100 we can see fast rally towards 24250/24500. Bearish below 24000 for a fall towards 23700/23500. Important intraday time for reversal can be at 9:30/1:44. Trading Capital Required For New Traders

  • Bank Nifty March Future Open Interest Volume is at 18.1 lakh with liquidation of 0.03 Lakh, with increase in Cost of Carry suggesting short positions were covered today. Bank nifty Rollover cost @25010, closed below it cracked 900 points
  • 25000 CE is having highest OI @5.7 Lakh resistance at 24500 followed 25000.24000-26000 CE added 3.3 lakh in OI so bears added position at higher levels.

 

  • 24000 PE is having highest OI @10.2 Lakh, strong support at 24000 followed by 24200.24000-27000 PE  liquidated 1.7 lakh in OI so bears ran for cover and now only support lying is in range of 24100-24000.

 

Buy above 24202 Tgt 24300,24370 and 24475(Bank Nifty Spot Levels)

Sell below 24100 Tgt 24030,23920 and 23800 (Bank Nifty Spot Levels)

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One thought on “Bank Nifty ready for a dead cat bounce,EOD Analysis

  1. Avinash S Rajadhyaksha

    Bank nifty remains continuously oversold for six days so a dead cat bounce expected is justified .

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