Bank Nifty View for 19 Apr 2022


Bank Nifty OHLC on 18 Apr 2022

Bank Nifty finally broke the previous range of five trading sessions as mentioned in our yesterday’s article, with huge gap down opening. Bank nifty opened at 36833.15 (almost near our support given in the article), down by 630.25 points from Apr 13th closing price of 37463.40. It gave a small pullback and made day’s high of 36965.85. Eventually it made a low of 36441.35. Bank Nifty recovered a bit in the end and closed at 36729

Bank Nifty OHLC on 18 Apr 2022

What does Bank Nifty’s EOD Chart tell us?

Bank Nifty Apr Futures closed just at 21SMA, forming an indecisive Doji candlestick.

RSI on daily timeframe is below 50 at 49.66 on bank nifty fut and 49.90 on spot, indicating bearishness. Weekly RSI (50.26) is just below the daily RSI and monthly RSI closed just below 60 at 59.37. If monthly RSI regains 60 and sustains above, we may see a bit of upward rally. But otherwise, overall RSI is indicating bearishness.

A similar red Volume bar to 13th Apr was formed, with a volume of 4.09M.

Bank Nifty Open Interest (OI)

Calls: The highest OI is at 37000 with huge volume buildup, indicating immediate resistance. The next highest open interest is seen at 37500 strike price on the call side. The price of all the calls have fallen with an increase in OI suggesting short buildup on the call side.

Resistance Levels: 36840, 37240 (Charts + OI)

Puts: The highest OI on the put side can be seen at 37000, followed by 36000 and 36500 strike price. The put premium have increased with an increase in OI suggesting Long buildup on the put side.

Support Levels: 35740, 36216 (Charts + OI)

Global Markets

  • NASDAQ is down by 0.85% while projecting this view.
  • Dow Futures is down -102 points (-0.30%)
  • SGX Nifty is also down by 19 points.

Conclusion: Bank Nifty is at a crucial point and we need to see if it gives a bounce from the 21SMA. Overall all the points still indicate more bearishness unless it sustains above 21SMA and above 60 on monthly RSI.

The upside potential is looking restricted, and one should continue to be cautious.

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