If you’re looking to trade Bank Nifty and want to increase your chances of success, then you need to understand Bayers Rules. While this trading strategy has been around for a long time, many traders still struggle to implement it effectively. In this post, we’ll demystify Bank Nifty Bayers Rules and provide a step-by-step approach to help you master this proven trading strategy.
Bayer Rule 27 states that big tops and major bottoms occur when Mercury’s speed in Geocentric longitude is 59 minutes or 1 degree 58 minutes. As of yesterday, Bank Nifty formed another DOJI, and today we have FIN NIFTY expiry with the price still trading above the 1×2 gann angle.
Step-by-Step Approach to Trading Bank Nifty with Bayers Rules
- Step 1: Identify the trend — Trend is Sideways
- Step 2: Determine the entry point– For Long 39700 For Short 39270
- Step 3: Set stop loss and profit target –SL for Long and Short 39449
- Step 4: Monitor the trade and adjust the stop loss and profit target
- Step 5: Exit the trade at the right time
Swing traders can expect a potential move towards 39905, 40116, or 40327 if the Bank Nifty trades above 39700. However, if the Bank Nifty falls below 39270 , Bears may become more active, leading to a move towards 39063,38852,38641,38430
Traders may watch out for potential intraday reversals at 9:37,10:34,11:22,1:16, 2:56. How to Find and Trade Intraday Reversal Times
Bank Nifty March Futures Open Interest Volume stood at 19.5 lakh, liquidation of 1.21 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 39800 strike, followed by the 40000 strike. On the put side, the 39500 strike has the highest OI, followed by the 39300 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 39500 and the put-call ratio (PCR) is at 1.02. 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 40227. 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 39517 , Which Acts As An Intraday Trend Change Level.
Intraday Trading Levels:
Buy above 39512 with targets at 39619, 39729 and 39888 (Bank Nifty Spot Levels)
Sell below 39225 with targets at 39108, 38920 and 38729 (Bank Nifty Spot Levels)
Wishing you good health and trading success as always.As always, prioritize your health and trade with caution.