Bank Nifty Trade Plan for 20 Dec

By | December 19, 2024 9:00 pm

FII Activity: Bearish Sentiment in Bank Nifty Index Futures

Foreign Institutional Investors (FIIs) exhibited a bearish stance in the Bank Nifty Index Futures market by shorting 203 contracts worth ₹ 16.98 crores. This activity resulted in a Increase of 4967 contracts in the net open interest.

As Discuused in Last Analysis

Bayer’s Rule once again proved effective in capturing the trend, as discussed earlier. The price convincingly closed below 52348 , signaling further downside, and with today’s gap-down opening, bears are expected to take control. Astro and Gann levels continue to provide an additional edge in identifying key market moves.


Key Factors to Watch Today:

  • Fed Surprise: The Fed delivered an unexpected decision yesterday, with no rate cuts, adding to global market uncertainty.
  • Critical 100 SMA Level: The price is approaching the 100 SMA at 51724.
    • A close below 51724 could signal more pain, with potential downside toward the last swing low of 51000/50555
    • Bulls need a close above 52000 to regain control and initiate any meaningful upside.

Traders should stay cautious and monitor these critical levels closely, as the market navigates through expiry-related volatility and global macro influences.

Boost Your Trading Success with Mission-Vision Statements: A Guide to Clarity and Consistency

Bank Nifty has experienced a sharp decline of 3.7% over the last four trading sessions, coinciding with the confluence of astro and Gann dates on Monday. This pivotal alignment has clearly shown its impact on market dynamics.

Key Levels for Tomorrow’s Weekly Close

As we approach the weekly close, the 52000 is a critical zone for the bulls to defend. A close above this range would signal strength and set the stage for a potential recovery.

On the other hand, bears will aim to push the index below 51250, paving the way for another significant move next week.

Winter Solstice: An Important Time Cycle Ahead

Next week, the market will also factor in the Winter Solstice, a major time cycle event. Historically, such events have been known to trigger significant market volatility, adding weight to the importance of tomorrow’s close.

Outlook

Traders should keep a close watch on these key levels during tomorrow’s session. A decisive weekly close in either direction could provide clues about the trend for the coming week.

 

Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 51678 for a move towards 51908/52138/52367.Bears will get active below 51448 for a move towards 51218/50968

Traders may watch out for potential intraday reversals at 10:02,11:31,12:31,02:33 How to Find and Trade Intraday Reversal Times

Bank Nifty December Futures Open Interest Volume stood at 21.9 lakh, with liquidation of 0.88 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a closure of SHORT positions today.

Bank Nifty Advance Decline Ratio at 14:36 and Bank  Nifty Rollover Cost is @51689  closed above it.

Bank Nifty Gann Monthly  Trade level :52769 closed above it.

Bank Nifty closed above 20/50/100 SMA @51913,Trend has changed to Sell on Rise till below 52000.

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 53000-51408-49965. 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 52300 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 51000-52000 range. 

The Bank Nifty options chain shows that the maximum pain point is at 51500 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 you want to be a successful trader during a loss-making period, you need to learn the art of losing. If you condition your mind to lose without anxiety, without emotional attachment, and without the desire to get even, things will start turning around for you.

For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 52974 . 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 51636, Which Acts As An Intraday Trend Change Level.

BANK Nifty Intraday Trading Levels

Buy Above 51610 Tgt 51800, 51950 and 52108 ( BANK Nifty Spot Levels)

Sell Below 51475 Tgt 51323, 51166 and 51008 (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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Check out Gann Course Details: W.D. Gann Trading Strategies

Check out Financial Astrology Course Details: Trading Using Financial Astrology

Check out Gann Astro Indicators Details: Gann Astro Indicators

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