Essential Bank Nifty Trade Tactics for August 20 2024: What You Need to Know

By | August 20, 2024 8:54 am

Foreign Institutional Investors (FIIs) exhibited a Bearish Stance in the Bank Nifty Index Futures market by Shorting 1497 contracts with a total value of 114 crores. This activity led to a increase of 1159 contracts in the Net Open Interest.

As Discuused in Last Analysis

Bank Nifty is expected to open with a gap up today based on global cues. However, the key question is whether the gap will sustain, given the influence of the Mars Square Saturn aspect and the impact of ‘Rule No. 38: Mercury Latitude Heliocentric.’ This rule suggests that significant tops and bottoms are often produced when Mercury, in this motion, passes specific degrees. Mars, the planet of energy, combined with Saturn, which typically depresses prices, and the fact that Mercury and Earth are at their minimum distance, indicates that the combined effects of Mercury, Mars, and Saturn will likely result in a volatile market move today. The trend for the day will likely be determined by the first 15 minutes’ high and low. It is advisable to carry overnight positions with a hedge, as significant astrological changes are expected over the weekend. Price is currently near 49,700, which is the 50% retracement level, suggesting that we could see a move of 1,008 points in Bank Nifty over the next 2-3 trading sessions.

Bank Nifty provided an upward move from the octave point and astro cycle confluence, as discussed in the previous analysis. Yesterday, it reacted from the critical Gann level of 50,653 and the upper end of the Gann angle, as shown in the chart below. With Jupiter Square Saturn, this aspect is likely to bring a long-term trend change in the market. Therefore, until Monday’s high of 50,728 and low of 50,283 are broken, it is advisable to avoid taking swing trades.

Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 50546 for a move towards 50568/50991/51214 Bears will get active below 50323 for a move towards 50100/49877/49654.

Traders may watch out for potential intraday reversals at 10:09,11:02,12:46,01:21,02:33  How to Find and Trade Intraday Reversal Times

Bank Nifty Aug Futures Open Interest Volume stood at 30.3 lakh, with addition of 0.81 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a addition of SHORT positions today.

Bank Nifty Advance Decline Ratio at 06:06 and Bank  Nifty Rollover Cost is @51740 closed above it.

Bank Nifty Gann Monthly  Trade level :50923 closed below it.

Bank Nifty closed below 20/50 SMA @50896 Trend is Sell on Rise

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 48819-50271-51724-53263. 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 50500 strike, followed by the 51000 strike. On the put side, the 50000 strike has the highest OI, followed by the 49500 strike.This indicates that market participants anticipate Bank Nifty to stay within the 49200-50000 range. 

The Bank Nifty options chain shows that the maximum pain point is at 50300 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 .

Your losing trades do not diminish you as a person. You are not your losing trades. You are also not your winning trades either. They are simply by-products of the business that you’re in.

For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 50673 . 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 50572 , Which Acts As An Intraday Trend Change Level.

BANK Nifty Intraday Trading Levels

Buy Above 50420 Tgt 50529, 50636 and 50888( BANK Nifty Spot Levels)

Sell Below 50323 Tgt 50191, 50015 and 49747 (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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