As Discussed in Last Analysis 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. Low made was 40609 so bulls were able to hold 40513 and we saw a big rally in Bank Nifty. Now “Bayer Rule 2: Trend goes down within 3 days when the speed difference between Mars and Mercury is 59 minutes. Leads to Big Move ” we are moving into crucial range of 41622-41860 which bulls need to cross for the rally to continue towards 42225/42500.
Bank Nifty Feb Future Open Interest Volume is at 22.7 lakh with liquidation of 2 Lakh contract , with increase in Cost of Carry suggesting Long positions were closed today.
Bank Nifty Rollover cost @42742 and Rollover % @77 Closed below it,
Bank Nifty Bulls now need to hold 41061 for trend to remain buy on dips.
Maximum Call open interest of 20 lakh contracts was seen at 42000 strike, which will act as a crucial resistance level and Maximum PUT open interest of 17 Lakh contracts was seen at 1000 strike, which will act as a crucial Support level.
MAX Pain is at 42000 and PCR @0.99. Markets tend be range-bound when PCR OI (Open Interest) ranges between 0.90 and 1.05.
One of the reason why beginners trader blow up their trading account and have to leave trading forever is that they are extremely undercapitalized. They are forced out due to market noise
For Positional Traders Trend Change Level is 41072 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 41265 will act as a Intraday Trend Change Level.