Foreign Institutional Investors (FIIs) exhibited a Bullish Stance in the Bank Nifty Index Futures market by Buying 219 contracts with a total value of 18 crores. This activity led to a decrease of 689 contracts in the Net Open Interest.
Bank Nifty faced rejection for the sixth time from the SAP and Gann Annual TC confluence level of 52,348-52,434. The high made today was 52,760, with the index closing at 51,902. Despite the rejection, Bank Nifty managed to hold its 100 SMA at 51,902.
Today, Bank Nifty formed an Outside Bar Pattern, signaling potential volatility ahead.
- For Bears: A close below 51,617 (Gann Monthly TTC level) would confirm a breakdown.
- For Bulls: A close above 52,019 is needed for a positive weekly close, while on a monthly basis, bulls require a close above 52,350 to regain control.
Additionally, tomorrow marks Earth at 67.46 degrees, which has historically led to a positive bias in the market.
Traders should monitor these critical levels closely as we head into the final sessions of the week.
How to Predict Stock Movements Using Gann’s Price-Time Squaring Technique
The Earth at 67.46 degrees astrological event, combined with Gann’s weekly and monthly close levels, led to a rally in Nifty. The index closed the week with a Doji candlestick, signaling indecision, while the monthly close was above last month’s pivot of 51617 , making it a positive close overall.
The upcoming week will be very crucial, as markets will react to key economic data and events:
- GDP Numbers
- Auto Sales Data
- RBI Policy Announcement
These factors will make it an eventful and potentially volatile week for traders.
Key Levels to Watch:
- Bulls need a close above the 52348-52444 range, which is a confluence of Gann Monthly TC and SAP levels, to extend the rally.
- Bears need a close below 51617 to regain control.
- Sideways Mode: If the price remains between these ranges, consolidation is likely to continue.
Important Note for Traders:
Even if GDP figures disappoint, bad data should not be used to initiate shorts, as markets are forward-looking. For example, despite the negative Adani news, markets bottomed out and rallied soon after.
Traders should focus on price action around these levels and prepare for significant moves driven by the events in the coming week.
Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 52214 for a move towards 52442/52669/52897.Bears will get active below 51987 for a move towards 51759/51555.
Traders may watch out for potential intraday reversals at 10:06,11:01,12:56,01:45,02:25How to Find and Trade Intraday Reversal Times
Bank Nifty December Futures Open Interest Volume stood at 18.7 lakh, with addition of 6.5 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a Liquidation of LONG positions today.
Bank Nifty Advance Decline Ratio at 06:06 and Bank Nifty Rollover Cost is @51689 closed above it.
Bank Nifty Gann Monthly Trade level :51617 closed above it.
Bank Nifty closed above 20/50/100/200 SMA @51902 Trend is Buy on Dips till above 51635
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 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 0.85 . 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 .
If your last trade has been a winning trade you have greater confidence on the set up, might increase your size – remember what a series of winner you increase your trade size more than previous trade and take a big loss
For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 52706 . 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 52723 , Which Acts As An Intraday Trend Change Level.
BANK Nifty Intraday Trading Levels
Buy Above 52175 Tgt 52313, 52444 and 52610 ( BANK Nifty Spot Levels)
Sell Below 52025 Tgt 51900, 51729 and 51555 (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.