Friday, 21 January 2022

Is banknifty bearish

Banknifty daily chart analysis

Banknifty is bearish in the daily time frame. Today BNF took support from 55 ema and closed above 21 Ema. If BNF breaks today's high and closes above 21ema. Banknifty formed higher high on 12th January considering 13th December high and 20th December low. Banknifty is in a perfect place to bounce back as per wave structure.

Banknifty support and resistance

If banknifty breaks 37000, a quick fall might happen towards 35300.

Banknifty will be positional long once it starts trading above 38800

Future and Options data analysis

FII and Pro net sellers in the market. There might be a small relief rally, but the overall trend is still negative.

Astrological analysis

Next week the market will be very volatile. A sharp fall might happen near expiry.
Two important Astro events will occur on 23th Jan . Saturn & Mars will be at 45-degree aspect. Sun and Mercury will be inconjunct. 

These events usually lead to trend changes in the market. Monday high and low will be necessary for the rest of the week. 

Jupiter is at Rahu star, so high volatility is expected to continue till the end of February.
 

A possible effect of International market news

Market participants are worried about US FED's liquidity crunch and balance sheet normalization. Historically, the Indian market has been affected by the increase in interest. However, the banking and financial market typically perform well in this market type.

Covid and Geopolitical conflicts can trigger a sudden collapse in the market.

Trading levels for tomorrow 

  • Buy Above 37485 Tgt 37610, 37729, and 37900 (Bank Nifty Spot Levels)
  • Sell Below 37220 Tgt 37083, 36920, and 36816 (Bank Nifty Spot Levels)
Please click the link Brahmesh technical analysis to know more about various Astrotechnical reasons which might influence the movement of BNF.

Weekly levels

Above 38000, BNFwill be bullish with an immediate target of 38600, 39000.
37050 will work as weekly support for any down move.

A unique option trading strategy 

The strategy will consist of three strategies :
1. Hedged future trade 
2. Weekly trade using BATMAN strategy 
3. ATM straddle 


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