Bank Nifty Analysis: Riding the Bulls and Preparing for RBI Policy Volatility

By | December 6, 2024 8:54 am

FII Activity: Bullish Sentiment in Bank Nifty Index Futures

Foreign Institutional Investors (FIIs) exhibited a bullish stance in the Bank Nifty Index Futures market by buying 7056 contracts worth ₹573 crores. This activity resulted in an decrease of 4,597 contracts in the net open interest.

As Discuused in Last Analysis

Bank Nifty continued its rally on the upside, as anticipated, once it closed above the 52,348-52,444 range, which is the confluence of Gann Monthly TC and SAP levels. Today, after breaking above 52,712, the index rallied toward 53,297, as projected.

As we approach the RBI policy announcement, bulls need to hold the 52,762 level during any dips. If this level is defended, the rally could extend further toward the 53,882/54,444 range.


Key Reminder for Traders:

  • Important Astro Dates: Several significant astrological dates coincide with 6th December, the day of the RBI policy announcement.
  • Hedge Overnight Positions: To manage risks, avoid carrying overnight positions on 6th December without proper hedging.

Conquering Fear in Trading: Overcoming Emotional Traps to Build a Successful Trading Career

 

We have been successfully riding the bullish rally since the price crossed the confluence of 52,348-52,444, which represents the Gann Monthly TC and SAP levels, along with the Gann and Astro time cycle confluence. From this point, the price has rallied a remarkable 1,000 points.


Astrological Events Driving Market Volatility Today

Today brings significant astrological alignments that could lead to heightened market activity:

  1. Mercury at Inferior Conjunction
  2. Mercury at Perihelion
  3. Sun Conjunct Mercury
  4. Mars Ingress

These events suggest the potential for another volatile session, especially with the RBI policy announcement scheduled for later in the day.

 

 

 

 

 

Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 53603 for a move towards 53832/54062/54291.Bears will get active below 53373 for a move towards 53144/52914/52685.

Traders may watch out for potential intraday reversals at 09:19,10:55,12:22,01:35,02:36 How to Find and Trade Intraday Reversal Times

Bank Nifty December Futures Open Interest Volume stood at 21.8 lakh, with liquidation of 1 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a covering of LONG positions today.

Bank Nifty Advance Decline Ratio at 11:01 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 @52729 Trend is Buy on Dips  till above 52729

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 53500 strike, followed by the 53800 strike. On the put side, the 53000 strike has the highest OI, followed by the 52500 strike.This indicates that market participants anticipate Bank Nifty to stay within the 52500-53500 range. 

The Bank Nifty options chain shows that the maximum pain point is at 53000 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 .

Don’t trade when you’re tired or emotional. (angry and upset) Trading is a complex activity, and it’s important to be mentally sharp when you’re trading. If you’re tired or emotional, it’s best to take a break from trading.

For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 52645 . 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 53543, Which Acts As An Intraday Trend Change Level.

BANK Nifty Intraday Trading Levels

Buy Above 53600 Tgt 53729, 53888 and 54044 ( BANK Nifty Spot Levels)

Sell Below 53512 Tgt 53370, 53108 and 52900 (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.

Category: Bank Nifty Bank Nifty Astrology

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

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