Hello Guys, Hope you all are doing good. Today Nifty and Bank Nifty both broke previous support level and gave a good breakdown. Let’s look at Nifty chart today,
This is 60-Min chart of Nifty, You can see around 11800, there was a very good support level, which was broken in first hour itself in today’s session. This is what i posted in my weekly analysis post, that Nifty and Banknifty both are giving negative divergence in RSI & MACD. Based on Fibonacci retracement tool, first target was 11690, which was already hit. Next target would be 11580. Now Look at the gap we still hold. Can we expect Nifty will come down to fill this Gap before its new upside Journey?
Based on the current chart, 11800 is acting a strong resistance now for short term prospective. 11580 & 11410 are the levels we should keep on radar for next few sessions.
Open Interest Analysis:
Based on Option Chain data, Huge open interest buildup at 11800 & 11700, that means peoples are shorting at these levels. The Highest open Interest stands at 11900. Max Pain is at 11750 and PCR stands at 0.88. According to PCR at individual strike, Tomorrow’s range should be 11600-11800.
This is 60 Min chart of Bank nifty future, We can see that 30660 was the support which was already broken. Based On Fibonacci levels, 30300 & 29950 are the next support. BankNifty already hit 30300 and heading towards 29950. There is a Gap between 30125-29600, which is still open. IF bank Nifty manage to sustain below 30300 in First hour tomorrow, we can expect 29950 & then 29600 in coming sessions.
Open Interest Analysis:
Based on option chain data, Huge open Interest buildup at 30600 CE , 30500 CE & 30000 PE. Indicating a strong resistance around 30500-30600 and strong support at 30000, based on current data. The highest open interest stands at 31000 CE & 30000 PE, Indication a wide range for banknifty. Option pain stands at 30500 & PCR at 0.56. Based on Individual strike PCR, 30500 & 30600 indicating a resistance zone and 30300-30200 indication a support zone for tomorrow.
Some stocks you can keep on radar:
LT : 1501.95
BHEL : 68
Looking week for short term, Sustain below 68 will lead to 66.35 & 64.75. Stop loss you can keep at 69.65.
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DISCLAIMER: – we are not a SEBI research analyst. Views posted here 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 to interpreting specified analysis methods. This information should only be used by investors and traders who are aware of the risk inherent in securities trading.