Will Bank Nifty Take Support or BreakDown? Here Is Our View With Detailed Analysis:
Bank Nifty OHLC on 20 Apr 2022
Bank Nifty remained inside Tuesday’s range. Bank nifty opened at 37887.3, 141 points above Tuesday’s close of 36341.60. It remained sideways in a small range for the entire day.
Interestingly, Nifty and Bank Nifty were in complete opposite direction both on Tuesday and Wednesday, a trend which is increasingly seen off-late.
Bank Nifty made a high of 36513.85 and made a low of 36114.05 during the day and closed flat at 36314.90 or 0.07% lower.
Are we in for a big move or will it remain in the small range? Lets find out by studying further!
What does Bank Nifty’s EOD Chart tell us?
Will the bank nifty hold the trendline support? This is what we need to watch on bank nifty EOD chart. It also closed just above the horizontal support line.
RSI on daily timeframe is below 50 at 46.05 on spot and 45.64 on bank Nifty Apr futures, which is indicating bearishness. However, will it take support at 40? The monthly RSI is below 60 at 58.45, and is above the weekly RSI (48.46).
DRSI 46.05) < WRSI (48.46) < MRSI (58.45)
Also a green Volume bar was formed with a volume of 4.58M, which has almost engulfed the previous day’s red volume bar.
Bank Nifty Open Interest (OI)
Calls: The highest OI is at 37000 with decent OI and volume buildup. 36500 strike has huge volume and change in OI, indicating firm resistance at that level. Followed by 37500, 38k strike prices on the call side having decent volume and OI addition indicating capped upside potential for the expiry. 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 36000, followed by 36500 strike price. The next highest OI is at 35500 which may act as support for the expiry. The at the money and near by strike prices have also shed the premium, suggesting the strike prices were written on both sides.
Support Levels: 36216, 35740. 35500-40 (Charts + OI)
Global Markets
- NASDAQ has closed 166 points lower or -1.22%
- Dow Futures is up by +97 points (+0.28%) while writing this article.
- SGX Nifty closed at 72 points up at 17218 or 0.42%
- All the EU markets, specially CAC and DAX closed well in green
- Expect Hang Sang and Shanghai Composite, all other Asian Markets closed in green on Wednesday.
- Track global indices here:
https://www.aimarrow.com/lists/global-stock-market-indices/
Conclusion: There is immediate support at 36216 which Bank Nifty is holding to. Trendlines are also supporting for now. OI data is also suggesting support. However, if bank nifty doesn’t bounce from here or if it breaks the immediate support, we may be in for a bigger correction.
Even if there is a bounce, the upside potential is looking restricted, and one needs to remain cautious. It is a sell on rise scenario unless the data and other indicators change.
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