Foreign Institutional Investors (FIIs) exhibited a Bearish Stance in the Bank Nifty Index Futures market by Shorting 47170 contracts with a total value of 3723 crores. This activity led to a increase of 24468 contracts in the Net Open Interest.
Bank Nifty made a top on 26th September at 54467 and has since dipped to 52926 , a correction of 1545 points in just two trading sessions as price corrected from gann angle as shown in below chart. We discussed the possibility of this move as per Bayer’s Rule, which was covered in the video below. Yesterday, we saw a Sun conjunct Mercury aspect, and tomorrow we have a trading holiday, along with a Double Lunar date. This suggests a likely gap opening on Thursday, so it’s advisable to carry overnight positions with proper hedging.
SEBI has not changed any framework regarding F&O, so that event is out of the way. The 24,389 level is an important Gann level that bulls need to hold for a bullish October. There’s a saying: “Sell off on the 1st day of expiry, and if the low holds, it often leads to a bullish expiry.” Any close below 52729 will give the bears the upper hand.
Bank Nifty continued its decline, showing the impact of the solar eclipse as discussed in the video below. Today, we have two important Bayer’s Rules coming into effect, which involve Mars—the planet of energy—adding fuel to the current market trend.
Bayer Rule 6: The price hits a bottom when Mars is at 16 degrees 35 minutes of a sign, plus 30 degrees.
Bayer Rule 33: Significant moves occur when Mars in Geocentric longitude passes over 16 degrees 55 minutes 46 seconds.
Intraday traders should watch the first 15 minutes’ high and low to capture the trend for the day. Nifty is down 3.7 % for the week, and with today being the weekly close, bulls and bears will battle over the 52100 level.
Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 52124 for a move towards 52353/52582 .Bears will get active below 51665 for a move towards 51436/51207/50977.
Traders may watch out for potential intraday reversals at 10:31,12:18,01:25,02:24 How to Find and Trade Intraday Reversal Times
Bank Nifty September Futures Open Interest Volume stood at 24.4 lakh, with addition of 4.9 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 00:12 and Bank Nifty Rollover Cost is @54325 closed below it.
Bank Nifty Gann Monthly Trade level :52729 closed below it.
Bank Nifty closed below its 20 SMA @52434 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 50271-51724-53263-54801. 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 52000 strike, followed by the 52500 strike. On the put side, the 51500 strike has the highest OI, followed by the 51000 strike.This indicates that market participants anticipate Bank Nifty to stay within the 51500 -52500 range.
The Bank Nifty options chain shows that the maximum pain point is at 52000 and the put-call ratio (PCR) is at 0.80 . 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 .
During this phase of the rule-finding and the clean implementation of your Trading system you are faced with mental conflicts. That’s the hardest part of the Trading education to resolve “Mental Conflicts”.
For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 53815. 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 52626 , Which Acts As An Intraday Trend Change Level.
Bank Nifty Intraday Trading Levels
Buy Above 51850 Tgt 51950, 53066 and 52225 ( Bank Nifty Spot Levels)
Sell Below 51729 Tgt 51610, 51444 and 51225 (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.