Bank Nifty Trade Setup for 13th October 2022
Overall market outlook is bullish as of now, at least for short term. Only unknown factor here is the Fed event, which can make the markets to move violently. For the past 3 days
BANKNIFTY
has been in an range, especially the last two days looks like two consecutive inside candles. A break on either side can give big rally on that direction.
Predictions
- Charts : Bullish
- OI Data : Bullish
- FII Activity : Super Bullish (Fresh Long positions added, 1k Cr purchase in Futures)
Verdict :- Bank Nifty is showing strength as of now with daily chart closing above 10 EMA. If Fed event is inline with the market expectations, we can expect a good up move. 39.5k is a strong resistance with the largest Call OI accumulation; keep that level in focus if the market starts moving up.
Flat Open : A flat opening and subsequent Swing High break can lead to larger up move.
Gap Up : Large enough gap up near to 39280 or 39500 needs to be looked at with caution as potential for a reversal is there. If 15 minute chart makes a red candle at that level, short positions may be looked into.
Gap Down : Gap down below 39000 only is a good level to break for short positions, that too with reduced quantity as there are a lot of supports right below that.
BANKNIFTY
has been in an range, especially the last two days looks like two consecutive inside candles. A break on either side can give big rally on that direction. Predictions
- Charts : Bullish
- OI Data : Bullish
- FII Activity : Super Bullish (Fresh Long positions added, 1k Cr purchase in Futures)
Verdict :- Bank Nifty is showing strength as of now with daily chart closing above 10 EMA. If Fed event is inline with the market expectations, we can expect a good up move. 39.5k is a strong resistance with the largest Call OI accumulation; keep that level in focus if the market starts moving up.
Flat Open : A flat opening and subsequent Swing High break can lead to larger up move.
Gap Up : Large enough gap up near to 39280 or 39500 needs to be looked at with caution as potential for a reversal is there. If 15 minute chart makes a red candle at that level, short positions may be looked into.
Gap Down : Gap down below 39000 only is a good level to break for short positions, that too with reduced quantity as there are a lot of supports right below that.
Comment:
Bearish Price action forming in 15 minute chart. A break below the current candle low can be used for short entry
Comment:
Nice down move from the point mentioned above, 300+ point sell off.
SGX Nifty is also indicating a negative opening, but not with a large gap - under 70 odd points. So we can plan for a Long position if the swing high is crossed after opening. A swing high breakout can lead to a bullish expiry.
Probability for it go below 39000 are low, as it is having significant amount of Put OI present. Even Nifty has highest Put OI presence at 17000. So if we see a negative price action after opening, chances of a volatile / sideways expiry are high.