Banknifty weekly expiry analysis for 07/02/24.
Updated
Banknifty is consolidating in a range for last two trading session and chances are of a trending market on the expiry.
Vix is trading around 15, if it increases there will be another sideways market, else there can be a trend market if the Vix cools off.
Still, it is taking rejection from the 20 ema on the hourly charts, even the closing is below it.
In case of a gap down opening, bearish trend can be capture upto the support zone.
If there is a gap up opening, there will be confusion in the market and the expiry may remain silent.
Major bearish targets :- 45300, 4500
Enter the bearish move only when the market sustains below 45560 and shows some negative price action.
It has been respecting a trend line and taking rejection from it. Bullish entries should be avoided until markets start trading above 46500 level.
Resistance :- 46040, 46550
Wait for the price action near the levels before entering the market.
Vix is trading around 15, if it increases there will be another sideways market, else there can be a trend market if the Vix cools off.
Still, it is taking rejection from the 20 ema on the hourly charts, even the closing is below it.
In case of a gap down opening, bearish trend can be capture upto the support zone.
If there is a gap up opening, there will be confusion in the market and the expiry may remain silent.
Major bearish targets :- 45300, 4500
Enter the bearish move only when the market sustains below 45560 and shows some negative price action.
It has been respecting a trend line and taking rejection from it. Bullish entries should be avoided until markets start trading above 46500 level.
Resistance :- 46040, 46550
Wait for the price action near the levels before entering the market.
Note
It has been consolidating in a range and showing both side move on the expiry.
Let banknifty give a break out or a break down and enter the trade as there can be a 200-300 points trending move.
No trading zone :- 456000- 46100
The market is in a side way cycle and there will be trending market after it.
Option sellers market is there and option buyer will be facing some difficulty in holding the trades.
Wait for the price action near the levels and trade accordingly.
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Note
Banknifty has closed 800 points lower and there is probability of another red candle on the daily charts.
It has been facing resistance from 20 ema and may give the target of 200 ema on the dialy charts.
There was consolidation going on in the market and a trend day was waiting.
Major support :- 44960-45000, 44550
If market take out the support levels of 44550, short term bearish trend will be confirmed and sell on rise will continue.
Wait for the price action near the levels before entering the market.
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