More Pain In Bank Nifty! Find Out The Reason With The Help Of Our Detailed Analysis:
Bank Nifty OHLC on 22 Apr 2022
Bank Nifty opened with a gap, down by 302.05 points than previous day’s closing of 36514.15. It kept falling gradually during the day.
The selling intensified in the second half of the trading session, when it broke the support near 36216 given in yesterday’s analysis. The alert was also given on our telegram channel that it will take bank nifty to 36k.
Bank Nifty had done the same and made a low of 35991.50. However, it could manage to close just above 36k at 36044.75.
What does Bank Nifty’s EOD tell us?
Bank Nifty almost formed a bearish marubozu candlestick pattern, indicating strong bearishness. However, it has managed to close above the important level of 36k. Strong support can be seen at 35500-40 level.
The previous bottom was formed at 35016.3, roughly 35k. Not only chartically, but 35k may also act as psychological support for next week.
RSI and Volume Check
RSI on daily timeframe is nearing 40 and is at at 43.24 on bank nifty fut and 44.10 on spot, indicating bearishness.
RSI (44.10) < Weekly RSI (47.37) < Montly RSI (57.65)
A red Volume bar was formed engulfing the previous day’s green volume bar, with a volume of 4.10M.
Bank Nifty Open Interest (OI)
Calls: The highest OI is at 36500 closely followed by 37000 with decent volume and OI buildup, indicating immediate resistance. The price of all the calls have fallen with an increase in OI suggesting short buildup on the call side. This is clearly indicating more pain on bank nifty in the next expiry.
Resistance Levels: 36216, 36500, 36840 (Charts + OI)
Puts: The highest OI on the put side can be seen at 36000, followed by 36500 and 35000 strike price. The put premium have increased with an increase in OI suggesting Long buildup on the put side.
Support Levels: 35740, 35400-500, 35000 (Charts + OI)
Global Markets
- NASDAQ closed in deep red, down by 2.55% or -335.36 points lower
- Dow Futures caught fire and closed in deep red with 1098 points cut or -3.16% lower
- European markets have also closed in deep red
- SGX Nifty closed in red, down by 165 points or -0.96% lower
FII, DII, USDINR
- FII sold Rs -941.27 crores in index futures and bought Rs 1,800.96 crores in index options
- USDINR was up by 0.31% and closed at 76.45 on Friday
Conclusion: Bank Nifty again stopped falling at a crucial point at 36k. However, data, indicators and chart are still not looking good for bulls.
The upper limit for bank nifty is drastically coming down in each trading session. Overall, all the points still indicate more bearishness unless there is a shift in data and indicators.
However, if there is a huge gap down on Monday i.e. 25 Apr 2022, don’t try to chase it.
Follow us on:
Twitter: https://twitter.com/aim_arrow
Telegram: https://t.me/aimarrow
Instagram: https://www.instagram.com/aim_arrow/
Facebook: https://www.facebook.com/aimarrow/
