Bank Nifty consolidate in range before Budget,EOD Analysis

  • As discussed in Last Analysis   Bank Nifty continued its rally and closed above 19700, Holding 19700 bank nifty can bounce till 20000/20400. Bearish only on closed below 19360 for a move till 19140/18920. Bank Nifty gave whipsaw as it closed above 19700 but failed to give the follow upmove. Downside made low of 19561 and did not break 19360 so bulls are still safe. After a rally of 1000 points there will be some consolidation and as budget is also coming so range expansion will be seen in next 2 days. Bulls need close above 19800 for move towards 20200/20500. Bears below 19360 for move towards 19140/18920.  Common Excuses Made By Losing Traders

  • Bank Nifty Feb Future Open Interest Volume is at 20.7 lakh with liquidation of 0.75 lakh, with decrease in Cost of Carry suggesting long positions were closed today. Bank nifty Rollover cost @19080.
  • 20000 CE is having highest OI @5.1 Lakh resistance at 20000. 19000-21000 CE saw addition of 2.8 lakh in OI so bears added in 20500/21000.
  • 19000 PE is having highest OI @ 4.8 Lakh, strong support at 19000 followed by 18500, Bulls added 1.9 Lakh in OI in range of 19000-21000 PE massive addition by bulls suggesting 18500 can become support for the series.

Buy above 19650 Tgt 19720,19820 and 19920 (Bank Nifty Spot Levels)

Sell below 19500 Tgt 19430,19300 and 19160(Bank Nifty Spot Levels)

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