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Hello dear friend, in this blog post, we will do the intraday trend analysis and will try to find support and resistance for today in Nifty and BankNifty. So read the post till the end to know what the trading plan could be today based on the trend and levels.
The market opened flat, and We saw a sharp decline in the first hour itself. Nifty and Bank Nifty both are trading in reading and the trend looks completely bearish.
Nifty and Bank Nifty have given a breakdown from important support levels i.e. 17100 & 39700 in Nifty and BankNifty respectively. (Please keep in mind that these are futures levels).
Overall trend looks bearish where In the Nifty500 index, 75 stocks are advanced, and 425 are declining. So overall trend looks bearish today with a bearish short-term sentiment.
Intraday Trend Analysis Based on the chart
- Nifty has given a breakdown from 17000 and now heading toward the downside target of 16600.
- Below16600 medium tren trend has also been changed to Bearish.
- In BankNifty, after a breakdown from 39600, it is now heading towards a downside target of 38200. On the Upside 41300 is acting as the resistance now. And we expect further upside only after a successful breakout from this level.
Based on short-term trends we can create some bearish strategies but keep risk on limited side. Increasing IV also gives a good opportunity to deploy some credit spreads with neutral views like broken wing iron Condor or butterfly.
Intraday trend analysis based on OI data
- For Nifty: 16800 is acting as immediate support with a PCR at 4.62 and resistance has shifted to 17000 from 17200 with a PCR at 0.58. Max pain is at 17000.
- For BankNifty: 38900 is acting as immediate support with PCR at 3.88 and 39400 as immediate resistance with PCR at 0.37. Max pain is at 39000.
- Expiry Range:
- For Nifty = 17100 – 16800.
- For BankNifty = 38500 – 39500 ( based on current oi data. Keep following change in Oi for further levels)
The intraday trend is “Highly Bearish” in Nifty and “Bearish: in BankNifty. (based on our trend-following sheet and setup)
Trading Plan for Today
Because trend is bearish so we can create bearish strategies in Nifty and BankNifty:
- In Nifty, I have Shorted 17150 CE while keep following the data
- In banknifty, I have 39800 CE while keeping 39500 as the resistance level.
I have shared my Intraday strategies and trading setup in a small course. You can click on the below button to get access to the course.
DISCLAIMER: We are not SEBI research analysts. Views and trading strategies are posted in this weekly market newsletter only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline for interpreting specified analysis methods. This information should only be used by investors and traders aware of the risk inherent in securities trading.