Bank Nifty has been on a rollercoaster ride in recent times, experiencing wild swings in both directions. However, a recent development has caught the attention of many traders and investors: the formation of a DOJI candlestick pattern on Bank Nifty’s monthly timeframe. For those unfamiliar with candlestick charting, a DOJI candlestick occurs when the opening and closing prices of an asset are very close to each other, resulting in a very short body and long wicks. This pattern is often considered a sign of indecision in the market, as buyers and sellers are equally matched. DOJI pattern alone is not enough to predict a price reversal, and that it must be confirmed by Gann and Astro Analysis
As seen in below Gann Angle Chart Price is back to 1×1 gann angle which is a Bullish sign and now price need to move above 40769 for bullishnes to continue.
Swing traders can expect a potential move towards 40982, 41182 , or 41382 if the Bank Nifty trades above 40781. However, if the Bank Nifty falls below 40581 , Bears may become more active, leading to a move towards 40380,40180
Traders may watch out for potential intraday reversals at 9:36,10:20,11:31,1:30,2:53. How to Find and Trade Intraday Reversal Times
Bank Nifty April Futures Open Interest Volume stood at 35.1 lakh, liquidation of 0.56 lakh contracts. Additionally, the decrease in Cost of Carry implies that there was a closure of Short positions and addition of longs today.
Bank Nifty rollover cost is at 39864 and rollover is at 65.8%
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 40800 strike, followed by the 41000 strike. On the put side, the 40000 strike has the highest OI, followed by the 39500 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 40500 and the put-call ratio (PCR) is at 0.9 . 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 .
After a Trading Loss Whatever the cause, the best solution is just to move on to the next trade with a clear mind and in good spirits.
For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 40418 . 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 40734 , Which Acts As An Intraday Trend Change Level.
Intraday Trading Levels:
Buy above 40700 with targets at 40806, 41000 and 41225 (Bank Nifty Spot Levels)
Sell below 40550 with targets at 40435, 40295 and 40108 (Bank Nifty Spot Levels)
Wishing you good health and trading success as always.As always, prioritize your health and trade with caution.