Bank Nifty 16 May 2024 Trade Plan

By | May 16, 2024 8:52 am

Foreign Institutional Investors (FIIs) exhibited a Bearish stance in the Bank Nifty Index Futures market by Shorting 10828 contracts with a total value of 776 crores. This activity led to a increase of 3866 contracts in the Net Open Interest.

As Discuused in Last Analysis

Bank Nifty has bounced from the 1×2 Gann angle four times, as shown in the Gann chart below. Today, Mercury is moving into Taurus. Mercury is a small planet and often causes short-term trend changes. Traders need to watch the first 15 minutes’ high and low to capture the trend for the day. We will get US CPI data today, so tomorrow we will likely see a gap opening. Therefore, carry overnight positions with a hedge.

Bank Nifty will open gap up today due to positive CPI Data in US market, price is back to gann angle support zone as shown in below chart. Price need to close above 48000 for BUlls to start taking market up. Any close below 47500 Bears will get upper hand. Merucry Ingress will show its impact once yesterday High or Low is broken.

Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 48067 for a move towards 48283/48500/48717. Bears will get active below 47850 for a move towards 47633/47416.

Traders may watch out for potential intraday reversals at 09:40,10:35,12:41,1:12,2:07 How to Find and Trade Intraday Reversal Times

Bank Nifty May Futures Open Interest Volume stood at 24.4 lakh, with addition of 1 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 06:06 and Bank  Nifty Rollover Cost is @47985 closed below it.

Bank Nifty Gann Monthly  Trade level :48449 closed below it.

Bank Nifty closed below 20 SMA @48169 but closed above 50/100 SMA , Trend is Neutral.

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 48000 strike, followed by the 48500 strike. On the put side, the 47500 strike has the highest OI, followed by the 47000 strike.This indicates that market participants anticipate Bank Nifty to stay within the 47500-48500 range. 

The Bank Nifty options chain shows that the maximum pain point is at 47800 and the put-call ratio (PCR) is at 0.75 . 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 .

Trading is just a number game based on the odds so as a trader you should not put significance to one particular trade.

For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 48524. 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 47905, Which Acts As An Intraday Trend Change Level.

BANK Nifty Intraday Trading Levels

Buy Above 47750  Tgt 47900, 48040 and 48200 ( BANK Nifty Spot Levels)

Sell Below 47666 Tgt 47555, 47424 and 47300 (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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