As Discussed in Last Analysis Now we are back to gann angle support and Sun Moving in Capricon and also yesarly gann cycle on 21 Dec. Check last week 21 Dec we made a bottom and rallied. Bulls need to move above 34760 for a move towards 35134/35510. Bears will get active towards 34418 for a move towards 34048/33680.Bank Nifty opened with gap up made a low of 34389 whipsawing bears below 34418 and also failed to do any target on upside so it was a whipsaw day with SL triggering on both side. Now Bulls need to move above 34756 for a move towards 34940/35125/35309. Bears will get active below 34571 for a move back to 34387/34202/34018.
Bank Nifty Nov Future Open Interest Volume is at 23.4 lakh with liquidation of 2 Lakh contract , with decrease in Cost of Carry suggesting SHORT positions were closed today.
MAX Pain is at 34900 and PCR @ 0.95.
The Option Table data indicates decent support at 34300 and reasonable resistance at 35300.There is total OI of 2.90 Cores on the Call side and 1.77Cores on the Put side, So, the activity is more on the CALL side, indicating option writers are in BEARISH zone.
The critical quality needed to make money in this kind of market, where trends will flip on no notice is: Extreme flexibility Be prepared to flip your positions and trades with market flavour.It is always the minority which wins in the markets. So, be open for possibilities.
FII’s have been short from higher levels around 37000, We need a firm close above previous day high , Even if bank nifty rises by a couple of hundred points also – they will not go into loss. So, my assumption is they will not cover the shorts in a hurry – but are playing for a range bound market by dealing in the option segment actively. Their put writing ( PCR is increasing) and call buying against their shorts will lead to extended profits for them.
For Positional Traders Trend Change Level is 36514 on Futures and go long and short above/below it That will help you stay on the side of Institutions and which has a greater risk-reward ratio. For Intraday Traders 34821 will act as a Intraday Trend Change Level.