Sunday, 30 January 2022

Is Banknifty Bearish In budget week

How to trade banknifty in a budget week?

Banknifty is trading above 13 MA (35321) in the monthly time frame, closed above monthly Pivot (35534) and above AVWAP (37348) from 1st October high. The major trend is bullish.

Banknifty spot is trading well above 50 moving average in the weekly timeframe. 35650 provides strong support. Long term trend is bullish.

In daily time frame, banknifty is trading above 21 ema and closed above 1 st Pivot resistance 37330.

BNF spot is bullish in monthly, weekly, and daily time frames as per my technical analysis.

In the daily time frame price is trading well below 50-day vma over RSI (9). This shows weakness in the market. This is based on NK Sinha's Hilega Milega strategy which I follow.

Future and option data

FII are net sellers in index future, cash, and options data. This happened during COVID fall. You may watch an interesting video by Shailesh saraf FII data hints Nifty crash in February 2022.

Astrological view

Monday overall market might be bullish considering the forthcoming budget

4th Feb to 8th Feb market will be very sensitive and we may witness some big fall

Neural analysis for the Indian market 

As per neural analysis, the market might make a low in February.

You may refer to the link for the bank Nifty range from 2006-2021 by Brahmesh Bhandari.

Weekly trading Levels

Daily options trading strategy 

1. I will buy the option once the price breaks its 15 min opening range. I will maintain strict stop loss above the previous 5-minute candle. Buying option needs to be in tune with VIX VIX will also work as support and resistance tomorrow. 

2. Will sell the option in the direction of the trend based on the super trend (10,3). However, there might not be any theta decay due to high volatility. 

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