Bank Nifty 24 May Trade Plan as per NR7 Pattern

By | May 24, 2023 7:39 am

Foreign Institutional Investors (FIIs) displayed a Bullish approach in the Bank Nifty Index Futures market by Buying 2620 contracts worth 281 crores, resulting in a decrease of 1648 contracts in the Net Open Interest.

As Discussed in Last Analysis

Bank Nifty has formed an Inside Bar Pattern,Today being double ingress astro date today high and low will guide for the week. Trade Plan as shown below

Bank Nifty has formed DOJI /NR7 Pattern on Daily time frame and Jupiter 18 Uranus Aspect is also forming today so we can see good voltality in the Bank Nifty, Jupiter and Uranus both are Outer Plannet which bring trend chang and Jupiter has Impact on Banking stocks.

The NR7 pattern is a technical analysis tool used to identify periods of low volatility in the market. It signifies that the trading range of a particular security, in this case, Nifty, has contracted to its narrowest level in the last seven days. When the NR7 pattern occurs, it suggests that a significant move in price is likely to happen soon. Traders can take advantage of this pattern by formulating a well-defined trade plan as shown below.

 

 

 

For Swing Traders  Bulls need to move above 44095 for a move towards 44216/44338/44459. Bears will get active below 43850 for a move towards 43730/43609/43407

Traders may watch out for potential intraday reversals at 9:15,9:41,10:30,11:26,1:19,2:24 How to Find and Trade Intraday Reversal Times

Bank Nifty May Futures Open Interest Volume stood at 18.3 lakh, liquidation of 1.5 lakh contracts. Additionally, the decrease in Cost of Carry implies that there was a closure of LONG positions today.

Bank Nifty Advance Decline Ratio at 5:7 and Bank  Nifty Rollover Cost is @42773 and Rollover is at 75.8%

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 40789-41967-43216 . 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. Price is has broken 43216 Heading towards 44464

According to the Bank Nifty options chain, the call side has the highest open interest (OI) at the 44000 strike, followed by the 44500 strike. On the put side, the 43500 strike has the highest OI, followed by the 43000 strike. This indicates that market participants anticipate Bank Nifty to stay within the 43000-44000 range.

The Bank Nifty options chain shows that the maximum pain point is at 44000 and the put-call ratio (PCR) is at 0.86. 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 .

Remember, the first item on the agenda for a beginner is to learn how to trade, not to make money. Once you’ve learned to trade, money will follow.

For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 43455 . 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 44044 , Which Acts As An Intraday Trend Change Level.

Intraday Trading Levels

Buy Above 43900 Tgt 44046, 44207 and 44388 (Nifty Spot Levels)

Sell Below 43850 Tgt 43729, 43525 and 43400 (Nifty Spot Levels)

Wishing you good health and trading success as always.As always, prioritize your health and trade with caution.

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