Analyzing Bank Nifty Future and banknifty option data

Bank Nifty Future 1 min chart Analysis:

We observed that Bank Nifty Future experienced an ABC correction, started from top 45747.80 and seems completed at 45,175. This suggests a potential shift in market sentiment and opens the door for an impulsive wave formation.

bannifty future

Impulsive Wave Formation:

If the market follows the anticipated pattern, we expect to witness an impulsive wave formation consisting of five waves labeled as 1-2-3-4-5. It’s important to note that the validity of the impulsive wave formation remains intact as long as the 45,175 level is not broken down. This level serves as a critical support level, and if the market remains above it, the impulsive wave scenario holds true. Traders should monitor the price action closely to assess whether the 45,175 level is breached or holds firm.

Bank Nifty Future Key Levels to Watch:

  1. Point of Control (POC): The POC, representing the power of control, is concentrated between the 45,280 to 45,300 level. This range signifies an area where significant trading activity has taken place and can serve as a strong support or resistance zone.
  2. Golden Fib Level: Near the 45,342 level, we find a significant Fibonacci retracement level that adds further importance to this price region. Traders should pay attention to potential price reactions in the vicinity of this level.

Critical Level to Watch:

To confirm the validity of the impulsive wave formation, we need to monitor the price action closely. If Bank Nifty Future manages to sustain a level above 45,350, it could signal the initiation of the impulsive wave sequence. Traders should pay particular attention to this level as it could pave the way for further upward movement

Potential Upside Target for Bank Nifty Future:

Assuming the impulsive wave formation takes hold, we can set our sights on a higher target level of 45,500 and above. If Bank Nifty Future successfully breaches the 45,350 resistance, reaching this higher level becomes a distinct possibility.

Risk Management:

Remember, no analysis is foolproof, and risk management is paramount. Ensure you set appropriate stop-loss levels and adjust your position size based on your risk tolerance and trading strategy. Always trade with discipline and adhere to your predetermined trading plan.

Conclusion:

In summary, the 1-minute chart analysis of Bank Nifty Future indicates the completion of an ABC correction seems ended at 45,175 and the potential formation of an impulsive wave pattern is on. Wave 1 commenced from 45,175. The POC level between 45,280 to 45,300 and the golden Fib level near 45,342 add further significance to the price region. Exercise caution, manage risk effectively, and make informed trading decisions.

Banknifty Option Data Analysis:

  • Bank Nifty Options:
    • Put writers created rock support at 45,000.
    • Put writers are also capturing 45,200 as well.
    • Call writers are positioned at the 45,500 level.
    • Max Pain at 45200 level
  • Market analysis:
    • The market is range-bound between 45,000 and 45,500.
  • Put-Call Ratio (PCR):
    • PCR has cooled down to 1.15.

Banknifty Options

Conclusion :  This indicates that the banknifty is currently range-bound between 45,000 and 45,500 and buy on dip mode.

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We have given detailed article on SGX Nifty Transition to Gift Nifty .. you may like to read : GIFT Nifty: Explore the Key Changes and Impact on Traders in the SGX Nifty Transition

Disclaimer: The information provided in this analysis is for educational and informational purposes only. It should not be considered as financial or investment advice. Trading in financial markets involves risk, and past performance is not indicative of future results. Always conduct your own research and seek professional guidance when making investment decisions.

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