Yesterday, the Bank Nifty formed an NR7 pattern, and today is the Pluto Ingress, which is occurring almost after 10 years. The price is forming higher highs until yesterday’s low of 39837, which is held, indicating an upward trend.
The Bank Nifty Outside Bar pattern is one such pattern that traders should be aware of when analyzing the Bank Nifty index.The Bank Nifty Outside Bar pattern is a two-bar pattern that is used to identify potential market reversals. The pattern is formed when the high and low of the second bar are higher and lower than the high and low of the first bar, respectively. This means that the second bar completely engulfs the first bar, forming an outside bar pattern. The pattern indicates that buyers or sellers have taken control of the market and that a reversal may be imminent.
March 24, 2020, Bank Nifty formed the COVID bottom, so tomorrow is an important time cycle day. The first 15 minutes’ high and low will guide the day
Swing traders can expect a potential move towards 40149, 40348, or 40456 if the Bank Nifty trades above 39950. However, if the Bank Nifty falls below 39600 , Bears may become more active, leading to a move towards 39399,39199,38998
Traders may watch out for potential intraday reversals at 9:15,10:48,11:45,12:16,1:35, 2:53. How to Find and Trade Intraday Reversal Times
Bank Nifty March Futures Open Interest Volume stood at 23.9 lakh, addition of 0.55 lakh contracts. Additionally, the decrease in Cost of Carry implies that there was a closure of Short positions and addition of longs today.
Traders who follow the musical octave trading path may find valuable insights in predicting Bank Nifty’s movements. According to this path, Bank Nifty may follow a path of 38227-39332-40502-41672. This means that traders can take a position and potentially ride the move as Bank Nifty moves through these levels.
Of course, it’s important to keep in mind that trading is inherently risky and market movements can be unpredictable.
According to the Bank Nifty options chain, the call side has the highest open interest (OI) at the 40000 strike, followed by the 40500 strike. On the put side, the 39500 strike has the highest OI, followed by the 39000 strike. This indicates that market participants anticipate Bank Nifty to stay within the39500-40000 range.
The Bank Nifty options chain shows that the maximum pain point is at 40000 and the put-call ratio (PCR) is at 0.82. Typically, when the PCR open interest ranges between 0.90 and 1.05, the market tends to remain range-bound. PCR is on extreme end suggesting we can see sharp reversal .
I know it may sound strange to many readers, but there is an inverse relationship between analysis and trading results. More analysis or being able to make distinctions in the market’s behaviour will not produce better trading results– Mark Douglas
For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 40343. Going Long Or Short Above Or Below This Level Can Help Them Stay On The Same Side As Institutions, With A Higher Risk-reward Ratio. Intraday Traders Can Keep An Eye On 39989 , Which Acts As An Intraday Trend Change Level.
Intraday Trading Levels:
Buy above 39703 with targets at 39864, 40000 and 40144 (Bank Nifty Spot Levels)
Sell below 39552 with targets at 39379, 39225 and 39108 (Bank Nifty Spot Levels)
Wishing you good health and trading success as always.As always, prioritize your health and trade with caution.