04 July Bank Nifty Trade Plan

By | July 4, 2023 7:39 am

Foreign Institutional Investors (FIIs) displayed a Bullish approach in the Bank Nifty Index Futures market by Buying 1671 contracts worth 113 crores, resulting in a decrease of 823 contracts in the Net Open Interest.

Bank Nifty after breaking 45500 is on a breakout mode, and trading in Gaps. Yesterday was the 4 gap up, genereaaly its observed 5 gap gets filled in Bull Market. Traders who want to go Short look for this pattern

Today we have “Bayer Rule 15: VENUS HELIOCENTRIC LATITUDE AT EXTREME AND LEAST SPEEDS FOR MAJOR MOVES Imp Rule” “RULE NO. 40 VENUS HELIOCENTRIC LATITUDE DIVIDED INTO PARTS 0*0’ 2*30’ 0*13’ 3*00’ 1*50’ 3*17’ 2*17’ 3*23’” coming into effect, If you are intraday trader watch for first 15 mins high and low to capture the trend.

If you are Swing Trader Yesterday High and Low due to Lunar Cycle in very important and we have discussed the trade plan as shown below. 

Bank Nifty Trade Plan Based  Bulls will get active above 45375 for a move towards 45611/45846/46082. Bears will get active below 44859 for a move towards 44624/44388/44153

Traders may watch out for potential intraday reversals at 9:20,10:05,1:03,2:00,2:42 How to Find and Trade Intraday Reversal Times

Bank Nifty June  Futures Open Interest Volume stood at 26.5  lakh, addition of 0.15 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a covering of LONG positions today.

Bank Nifty Advance Decline Ratio at 9:3 and Bank  Nifty Rollover Cost is @44037  and Rollover is at 72.6%

Major Support for Bank Nifty is at 44026 which is 20 SMA

Bank Nifty has closed above the Upper End of Bollinger Band it has happened after Apr 2020 this is called a 3 Sigma event.

Traders who follow the musical octave trading path may find valuable insights in predicting Bank Nifty’s movements. According to this path, Bank Nifty may follow a path of 43444-44634-45923 . This means that traders can take a position and potentially ride the move as Bank Nifty moves through these levels. Of course, it’s important to keep in mind that trading is inherently risky and market movements can be unpredictable.  Price is near 44634

According to the Bank Nifty options chain, the call side has the highest open interest (OI) at the 45500 strike, followed by the 45800 strike. On the put side, the 44800 strike has the highest OI, followed by the 44500 strike. This indicates that market participants anticipate Bank Nifty to stay within the 44300-44800 range.

The Bank Nifty options chain shows that the maximum pain point is at 45000 and the put-call ratio (PCR) is at 0.81 . Typically, when the PCR open interest ranges between 0.90 and 1.05, the market tends to remain range-bound. PCR is on extreme end suggesting we can see sharp reversal .

Fundamental of Trading : 1. Proper preparation 2. Hard work 3. Patience 4. A detailed plan before every trade 5. Discipline 6. Trade Journal 7. Replaying important trades

For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 44817 . Going Long Or Short Above Or Below This Level Can Help Them Stay On The Same Side As Institutions, With A Higher Risk-reward Ratio. Intraday Traders Can Keep An Eye On 45623 , Which Acts As An Intraday Trend Change Level.

Intraday Trading Levels

Buy Above 45200 Tgt 45305, 45411 and 45517(Nifty Spot Levels)

Sell Below 45094 Tgt 44988, 44883 and 44777 (Nifty Spot Levels)

Wishing you good health and trading success as always.As always, prioritize your health and trade with caution.

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