As Discussed in Last Analysis It was a massive day of volatlity as shown in below chart Range for the day was 2533 points We had a strong upmove from 41200-42000 and downmove from 42000 to 39400, and formed a Massive Outside bar pattern. On Daily time frame bank nifty is down just 142 points but intraday traders would had a crazy ride.
Bank Nifty for 4 day has closed below its 100 DMA and now lot Depends on Adani Share movement, The fall seen in Adani group is massive and to me looks like a staged fall as Adani holds 75%+ shares so they can bring prices down for instiutions to avg at lower prices who have subcribed to FPO and we can see again a strong and sharp bounceback in Adani stocks.
Bank Nifty did not break the budget day low and closed above the budget day close of 40513. Till we are above 40500-40513 Bulls will have upper hand towards 40888/41225
Fall in Adani Stocks has hit the sentiment of PSU Banks but this might be few days of drama and things will be back to normal. Stock Market work on perception and it can change in matter of days. Only thing that can change is that “Strong hands” finding value and picks up deliveries which will definitely reflect in prices. There again, they can pick up deliveries at leisure..no need to panic with throw away or thrown down prices..
If you are trading, leave the news out. That is for the “fundamentals-following guys”. For a trader, prices alone matters and your actions should be based on that alone. As a true trader, keep your losses to a minimum by acting at the right moment.
Intraday time for reversal can be at 9:25/10:04/11:23/1:38/2:26 How to Find and Trade Intraday Reversal Times
Bank Nifty Feb Future Open Interest Volume is at 24.8 lakh with addition of 1.05 Lakh contract , with increase in Cost of Carry suggesting Long positions were added today.
Bank Nifty Rollover cost @42742 and Rollover % @77 Closed below it,
Bank Nifty Bulls now need to move above 40886 for trend to change
Maximum Call open interest of 20 lakh contracts was seen at 41000 strike, which will act as a crucial resistance level and Maximum PUT open interest of 17 Lakh contracts was seen at 40000 strike, which will act as a crucial Support level.
MAX Pain is at 41000 and PCR @0.98 . Markets tend be range-bound when PCR OI (Open Interest) ranges between 0.90 and 1.05.
No amount of study or practice can make one successful in the handling of capital if one really is not cut out for it.
For Positional Traders Trend Change Level is 41039 on Futures 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 40616 will act as a Intraday Trend Change Level.