Bank NIfty Breaks 20 SMA as Inflation Drops to 25 Month Low

By | June 12, 2023 11:53 pm

Foreign Institutional Investors (FIIs) displayed a Bearish approach in the Bank Nifty Index Futures market by SHORTING 105 contracts worth 18 crores, resulting in a decrease of 225 contracts in the Net Open Interest.

As Discussed in Last Analysis

A double ingress refers to the occurrence when two planets change their zodiac signs simultaneously. This alignment can have astrological implications and is often believed to influence various aspects of life, including financial markets.In astrology, planetary movements are considered to have a profound impact on human behavior and events. When two planets experience a double ingress, their combined energies and influences can create a unique configuration that may affect the overall market sentiment and specifically impact sectors such as banking. Last time we had Double Ingress on 20 May but Price continues to remain range boud so hopefully this DOuble Ingress shows Explosive move as price is near 4×3 Gann Angle also.

Mercury is moving in Gemni and Pluto in Capricon on 11 JUne and Rahu in Aries on 12 June suggesting we are going to see an explosive move in Bank Nifty. Bank Nifty has also formed an Inside Bar pattern after an Outside Bar pattern on Thursday and Prices are taking support at 20 SMA.

Bank NIfty has been in range of last 22 Days, Price continue with its contraction on astro date which is perfect set up on Astro Date. India’s retail inflation drops to 25-month low in May on softer food price; industrial output rises sharply. Remmber Market are always forward looking and current data has already been anticipated and we have seen a decent rally. Tommrow we have US inflation data carry overnight position with Hedge.  On Importnat observation today was Monthly Put Premium not decaying in upmove seen today.



Trade Plan as per Inside Bar  Bulls will get active above 44125 for a move towards 443250/44375/44501/44626 Bears will get active below 43870 for a move towards 43748/43623/43497/43372


Traders may watch out for potential intraday reversals at 9:28,11:13,12:03,1:06,2:12,2:57How to Find and Trade Intraday Reversal Times

Bank Nifty June  Futures Open Interest Volume stood at 23.7 lakh, liquidation of 0.27 lakh contracts. Additionally, the decrease in Cost of Carry implies that there was a covering of SHORT positions today.

Bank Nifty Advance Decline Ratio at 7:5 and Bank  Nifty Rollover Cost is @43908 and Rollover is at 72.2%

Major Support for Bank Nifty us at 43980 which is 20 SMA,Finally we closed below 20 SMA.

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 — 44464 done

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 44000 strike. This indicates that market participants anticipate Bank Nifty to stay within the 43500-44000 range.

The Bank Nifty options chain shows that the maximum pain point is at 44000 and the put-call ratio (PCR) is at 0.81.11. 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 .

Don’t overtrade. It’s tempting to trade frequently, but this can lead to losses. It’s better to trade less and focus on making high-quality trades.

For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 44177 . 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 44083, Which Acts As An Intraday Trend Change Level.

Intraday Trading Levels

Buy Above 44080 Tgt 44188, 44323 and 44444 (Nifty Spot Levels)

Sell Below 43870 Tgt 43759, 43586 and 43400 (Nifty Spot Levels)

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

Category: Daily

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

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