As Discussed in Last Analysis 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 a trader, it is essential to be well-informed and prepared before the RBI policy announcement. With Bank Nifty being one of the most popular indices for trading, it is crucial to have a sound trading strategy to take advantage of the market volatility.
Bank Nifty closed above 1×1 Gann Angle as shown in below chart which is a Bullish sign and now price need to Hold 40769 for bullishnes to continue.
The Gann Octave Point Trade Plan has been used by traders for decades and has proven to be a reliable and profitable trading strategy. It allows traders to identify key support and resistance levels with a high degree of accuracy, giving them a clear idea of when to enter and exit trades.
Bank Nifty has retraced back to its 50% point at 40769, which falls between 44151 and 37386 as shown in the chart below. Price has reacted multiple times from this point, and Gann has emphasized the importance of the 50% point. This price level, coming before the RBI policy, is crucial as per the time cycle. Today we have “Bayer Rule 2: Trend goes down within 3 days when the speed difference between Mars and Mercury is 59 minutes, which could lead to a big move. Additionally, we have a full moon tomorrow, so multiple time cycles coming together could result in a significant move in Bank Nifty
Swing traders can expect a potential move towards 41182 , or 41382 if the Bank Nifty trades above 40982 . However, if the Bank Nifty falls below 40781 , Bears may become more active, leading to a move towards 40581,40380,40180
Traders may watch out for potential intraday reversals at 9:32,12:24,1:39,2:44. How to Find and Trade Intraday Reversal Times
Bank Nifty April Futures Open Interest Volume stood at 27.6 lakh, liquidation of 7.54 lakh contracts. Additionally, the decrease in Cost of Carry implies that there was a closure of longs positions 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 41000 strike, followed by the 41300 strike. On the put side, the 40500 strike has the highest OI, followed by the 40300 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 40700 and the put-call ratio (PCR) is at 0.97 . 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 40584 . 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 40915 , Which Acts As An Intraday Trend Change Level.
Intraday Trading Levels:
Buy above 40935 with targets at 41057, 41212 and 41385 Bank Nifty Spot Levels)
Sell below 40774 with targets at 40610, 40413 and 40291 (Bank Nifty Spot Levels)
Wishing you good health and trading success as always.As always, prioritize your health and trade with caution.