Bank Nifty Analysis: Downfall Continues, Key Levels to Watch

By | January 13, 2025 10:59 pm

FII Activity: Bullish Sentiment in Bank Nifty Index Futures

Foreign Institutional Investors (FIIs) demonstrated a bullish stance in the Bank Nifty Index Futures market by buying 4,859 contracts worth ₹299 crores. This activity resulted in an increase of 1,535 contracts in the net open interest.

As Discussed in Last Analysis

Bank Nifty continued its downfall, breaking the Mercury Ingress low of 49230 and closing below it. Adding to the pressure, the 2024 US Job Report surpassed expectations on hiring, raising uncertainty about the path of interest rates this year.

Additionally, with the North Node (Rahu) changing signs, a long-term trend change could be on the horizon. This astrological shift often signals significant market moves.

Key Levels to Watch for Monday:

  • Support Zone: If Nifty holds the range of 48461-48500  during the first 15 minutes after a potential gap-down opening, there is a possibility of a reversal.
  • For a Complete Reversal: The price must close above 49250 to confirm a change in the trend.

Traders’ Note:
Monitor the first 15 minutes closely, as holding the support zone could set the stage for a recovery. If support breaks, further downside is possible. Stay cautious and manage positions carefully.

Mastering the Trading Brain: Breaking Free from Emotional Trading

Bank Nifty continued its downfall, breaking the Mercury Ingress low of 49,230 and closing below it on Friday. The market witnessed a waterfall decline, bringing the price back to its 1×3 Gann angle support zone.

Astrological Events to Watch Tomorrow:

  1. Full Moon
  2. Bayer Rule 3:
    “Price tends to rise when the angle between Mars and Mercury is 161 degrees 21 minutes 18 seconds; Mars must be retrograde.”
  3. Mercury Extreme Declination

These events suggest increased volatility, making the first 15 minutes’ high and low critical. Moreover, tomorrow’s high and low will remain valid throughout the week, offering guidance for short-term trades.

Key Levels to Watch:

  • For a Short-Term Reversal: The price needs to move above 48,300.

Traders’ Note:
Stay cautious and monitor the first 15 minutes closely to determine the week’s potential trend. Proper risk management is essential, given the heightened volatility expected.

 

 

 

Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 48148 for a move towards 48370/48593/48815.Bears will get active below 47926 for a move towards 47703/47512

Traders may watch out for potential intraday reversals at 09:42,12:41,01:55,02:52 How to Find and Trade Intraday Reversal Times

Bank Nifty December Futures Open Interest Volume stood at 24.9 lakh, with liquidation of 0.70  lakh contracts. Additionally, the increase in Cost of Carry implies that there was a covering of SHORT positions today.

Bank Nifty Advance Decline Ratio at 02:10 and Bank  Nifty Rollover Cost is @51689  closed Below it.

Bank Nifty Gann Monthly  Trade level :50312 closed below it.

Bank Nifty closed below 377  SMA @48283 ,Trend is Sell on Rise till close below 48300.

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 51408-49965-48521-47159. 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.– Price has closed below 48521 

According to the Bank Nifty options chain, the call side has the highest open interest (OI) at the 48500 strike, followed by the 49000 strike. On the put side, the 48000 strike has the highest OI, followed by the 47500 strike.This indicates that market participants anticipate Bank Nifty to stay within the 47500-48500 range. 

The Bank Nifty options chain shows that the maximum pain point is at 48000 and the put-call ratio (PCR) is at 0.52. 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 .

Mental Toughness is my business. Make it part of yours. Keep a journal. Feed your mind.

For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 48825. 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 50747, Which Acts As An Intraday Trend Change Level.

BANK Nifty Intraday Trading Levels

Buy Above 48111  Tgt 48252, 48465 and 48729 ( BANK Nifty Spot Levels)

Sell Below 47926 Tgt 47800, 47729 and 47610 (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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