Bank Nifty corrects 500 points after Price and Time Squares

  • As discussed in Last Analysis   Bank Nifty broke 23616 and made low of 23507 before bouncing back and failed to do our target of 23474 missing by 30 points. 24 June was an impulsive turn date and price bouncing from support region as shown in chart, Both Price and Time are meeting again, suggesting if Low of 23507 is held we are likely to make another attempt towards 23760/23900. Bearish below 23474 for a move towards 23328/23150. We were expecting prices to bounce back but as soon as 23507 was taken out bears were on full swing and effect of price and time squaring was seen as shown in below chart. Thats the beauty of price time squaring you get impulsive move. Bears are in front foot and break of 23180 again will see fall towards 23050/22836/22640.Break of 23000 should led to fast move towards 22640. Bullish above 23300 for a move towards 23500/23650   Trade for a living

  • Bank Nifty June Future Open Interest Volume is at 19.9 lakh with liquidation of 0.21 Lakh, with increase in Cost of Carry suggesting Long positions were closed today. Bank nifty Rollover cost @22660, closed above it.
  • 24000 CE is having highest OI @11.3 Lakh resistance at 23500 followed 23700. 23000-245000 PE added 20.8 lakh so Bears added position in 23700-24000 range, making a strong grip over 23500.
  • 23000 PE is having highest OI @12.6 Lakh, strong support at 23000 followed by 23200, Bulls liquidated 9.2 Lakh position in OI in range of 23200-23500 making strong base in range of 23000-23200.

Buy above 23310 Tgt 23400,23510 and 23620 (Bank Nifty Spot Levels)

Sell below 23180 Tgt 23100,23000 and 22800 (Bank Nifty Spot Levels)

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