Bayer Rule 6 in Focus: Volatility Ahead for Bank Nifty

FIIs Maintain Bearish Bias in Bank Nifty Futures – May 22, 2024

Foreign Institutional Investors (FIIs) continued to express a Bearish stance in the Bank Nifty Index Futures market, Shorting 5028 contracts worth ₹829 crore.

Importantly, this was accompanied by a net open interest (OI) increase of 1932 contracts, indicating that the activity  involved fresh SHORT positioning.

Breakdown & Interpretation:

• ✔ Contracts SOLD : 5028

• Notional Value: ₹829 crore

• Net OI Change: +1,932 contracts

• Implication:
  FIIs are gradually scaling into Bearish positions, even as the index consolidates near key Support levels.

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As Discussed In Last Analysis

Bank Nifty extended its decline in today’s session, retracing 50% of Monday’s sharp rally. According to Gann analysis, the 50% retracement level is often a decisive trend reversal zone, and today’s price action validated this principle.

The index found strong intraday support at 54,491, which:

• Coincides closely with the previous swing high of 54,467

• Aligns with the Gann retracement zone, creating a powerful price-time confluence

This dual support triggered a swift recovery, indicating that buyers are active on dips, especially around technical inflection points.

Key Technical Levels to Watch:

• ✅ Support Held: 54,491
  (Also previous breakout level at 54,467)

• Immediate Resistance: 54,872
  (Gann level and intraday pivot)

• Breakout Target: 55,500
  (Short-term bullish confirmation above 54,872)

Market Implication:

• Holding 54,467–54,491 affirms buyer interest on pullbacks and keeps the bullish structure intact.

• A close above 54,872 will likely invite momentum buying, with a possible rally extension toward the 55,500 zone.

• A failure to break above 54,872 may keep the index in a sideways-to-negative bias in the short term.

Bayer Rule 6:

“The price is at a bottom when Mars is at 16°35′ of any zodiac sign, and a reversal is likely as it moves +30°.”

This astrological condition is coming into effect today, signaling a potential key turning point for Bank Nifty. Historically, this setup has preceded sharp trend changes, especially when prices are coiling in narrow ranges — just like we’re seeing now.

Technical + Astro Confluence

• Current Setup: Bank Nifty is trading in a tight range, reflecting compression — typically a precursor to volatility expansion.

• Time Trigger: The astro cycle activation combined with weekly closing pressure can act as a catalyst for a breakout or breakdown in the next 1–2 sessions.

Key Weekly Closing Levels to Watch:

• Bullish Control Zone: 55,200–55,250
  A close here may reinforce the uptrend and encourage continuation next week.

• Bearish Control Zone: Below 54,900
  A close below this level could invite selling pressure and profit booking.

Trading Strategy:

• Stay light ahead of the close; volatility expansion is expected early next week.

• Watch for a breakout from today’s range.

• Use weekly close positioning to gauge directional bias for Monday.