As discussed in last analysis Bank nifty 37807-37924 range longs should lighten off and take some money off the table. Fresh Long only on close above 38000 for a move towards 38120/38300/38666. Bears will get active below 37555 for a move towardds 37309/37100. We opned with Huge gap down as bank nifty was not able to close above the range of 37807-37924 and also formed Inside Bar Pattern, Now bulls need to move above 37539 for a move towards 37636/37732/37282/37924. Bears will have chance below 37347 for a move towards 37251/37157/37058.
Bank Nifty Jan Future Open Interest Volume is at 21.2 lakh with liquidation of 0.83 Lakh contract , with increase in Cost of Carry suggesting LONG positions were closed today.
MAX Pain is at 37500 and PCR @ 0.82. Rollover cost @35213 closed above it.
The Option Table data indicates decent support at 37000 and reasonable resistance at 38000.There is total OI of 1.03 Cores on the Call side and 0.86 Cores on the Put side, So, the activity is more on the CALL side, indicating option writers are in BEARISH zone.
What we have yesterday is a hollow correction. The volumes are not great – either in the FnO segment or in the equity segment.There are two ways of looking at this – We can consider the correction to be an attempt to flush out weak longs. Alternatively, we can consider this to be just teaser.
2 Important Bayers Rules are becoming active today and tommorow Bayer Rule 27: Big tops and big major bottoms are when Mercury’s speed in Geocentric longitude is 59 minutes or 1 degree 58 minutes and Bayer Rule 19: We have tops when Venus in geocentric position passes the conjunction with the Sun. SUN Conju Venus . 37924 on Upside and 37109 on downside break any side will lead to 1000 point move in Bank Nifty.
For Positional Traders Trend Change Level is 36476 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 37498 will act as a Intraday Trend Change Level.