Bank Nifty forms Inside Bar, 07 May 2024 Trade Plan

By | May 7, 2024 9:05 am

Foreign Institutional Investors (FIIs) exhibited a Bearish stance in the Bank Nifty Index Futures market by Shorting 6938 contracts with a total value of 512 crores. This activity led to a increase of 4380 contracts in the Net Open Interest.

As Discuused in Last Analysis

The US Fed kept rates unchanged. Bank Nifty formed a DOJI after hitting a fresh all-time high. As long as the price remains above 49000, bulls have the upper hand. The last 1-hour decline was more due to the weekly expiry and trading holiday on May 1st. Today, Pluto is going retrograde, which may cause volatility. The highs and lows of the first 15 minutes will guide us in another volatile session today.

Bank Nifty formed an Inside Bar on Astro which is a very good combination to capture the next move. Today being an Election Day we can see good voaltlity in Bank Nifty. Results season has been OK kind not so great results. Price is trading below its MOnthly Open of 49262 but closing above its 20 SMA @48398. So range of 49262-48398 become a neutral range. Break of this range can lead to move of 1000+ points.

Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 49080 for a move towards 49304/49527/49751. Bears will get active below 48857 for a move towards 48633/48409/48186

Traders may watch out for potential intraday reversals at 09:54,11:43,1:07,2:57 How to Find and Trade Intraday Reversal Times

Bank Nifty May Futures Open Interest Volume stood at 20.4 lakh, with addition of 0.47 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a addition of LONG positions today.

Bank Nifty Advance Decline Ratio at 07:05 and Bank  Nifty Rollover Cost is @47985 closed above it.

Bank Nifty Gann Monthly  Trade level :49262 closed below it.

Bank Nifty closed above 20/50/100 SMA, Trend is Sell on Rise till below 49262.

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 44610-45937-47265-48671-50077. 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 49000 strike, followed by the 49500  strike. On the put side, the 48500 strike has the highest OI, followed by the 48000 strike.This indicates that market participants anticipate Bank Nifty to stay within the 48500-49500 range. 

The Bank Nifty options chain shows that the maximum pain point is at 49000 and the put-call ratio (PCR) is at 0.96. 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 .

Simplicity in trading demonstrates wisdom. Complexity is the sign of inexperience.

For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 48981 . 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 49170 , Which Acts As An Intraday Trend Change Level.


BANK Nifty Intraday Trading Levels

Buy Above 48936 Tgt 49025, 49170 and 49323 ( BANK Nifty Spot Levels)

Sell Below 48816 Tgt 48729, 48610 and 48485 (BANK Nifty Spot Levels)

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

As always, it’s essential to closely monitor market movements and make informed decisions based on a well-thought-out trading plan and risk management strategy. Market conditions can change rapidly, and it’s crucial to be adaptable and cautious in your approach.

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