Wednesday, 10 November 2021

Banknifty trade plan on expiry day -11th Nov 21

Will Banknifty Give a Strong positive Movement?

We will do technical analysis for the BNF chart daily, hourly, and 5 minutes to get a clue in the direction. In all time frames, Bazar is showing strong negative sentiments. Option analysis also shows supports the same view.

Daily chart

BNF is trading below 20 days moving average.
It took support on 34 ema today, i.e., 30100. 39100 is also the convergence of multiple AVWAP lines. 

RSI ( 9) is below 50, and  Ehler Fisher is below 0

The chart shows bearish strength.
Hourly chart

Banknifty future took support on 233 ema on the hourly chart, and the trend is negative. 

Multi time frame CCI chart

banknifty tradingview chart

BNF gave a gap-down and consolidated the whole day. BNF broke 39200 Gann level, and the subsequent necessary support is 38800. 

The overall trend is bearish.

Option chain for monthly expiry 

Put option  OI   159953
Call option  OI  194616
There is an unusual gap between the call option and the put option.
FII added more 5k short position. Client data shows they are in long positions.

Astrology view 

Important planetary time cycle for tomorrow  9:45 AM,1:40 PM,2:45 PM 

I guess the market will go down further at the beginning. Next, it will be volatile. There might be a sharp short-covering after 2 PM 

What is the possible Gann price time square point in this downtrend

1st day  25th Oct         high  41935

4th day 29th Oct         low    38606

9th day  8th Nov         low    39051

Price is consolidating within 38809 and 39205. 
The price needs to break 4th day low 38606 by the 9th day or 16th-day candle to continue downward. 
There is price-wise, and timewise correction is going on bank nifty future price.

How I Will plan my trade for expiry

Once the price is close to 38800, I will buy 39000 Call and sell 39500 Call. This will be a 1:2 credit call ratio spread.

Alternatively, I may create a 1: 2 credit bear spread once the price is near 39200.


1 comment: