Powerful BankNifty Analysis: Unveiling Elliott Wave and Option Data

Powerful BankNifty Analysis of Day Timeframe:

During today’s trading session, Bank Nifty formed an intriguing candlestick pattern known as the inside doji. This pattern occurs when the day’s price range falls within the previous day’s range, creating a small body and long upper and lower shadows. The doji represents indecision between buyers and sellers, as neither side gained dominance throughout the day. This lack of conviction often implies a period of consolidation or market indecision. we anticipate a range-bound market between the levels of 45000 and 45655 till it breaks either of the level.

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FII Buying Streak Indicates Positive Sentiment:

Today, FIIs purchased 1603.15 crore rupees worth of shares in the cash market and these Institutional Investors have been consistently buying shares in the cash market since June 27th, extending till today. This extended buying streak indicates confidence and a positive sentiment of big players.

Banknifty FII

Top Gainers and Losers Reflect Mixed Performance in Banking Stocks:

Today’s Bank Nifty EOD analysis highlighted the mixed performance of banking stocks, with 8 banks closing positively and 4 banks closing with losses. ICICI Bank, IndusInd Bank, and SBI stood out as the top gainers, while HDFC Bank, Axis Bank, and Bandhan Bank faced downward pressure as the top losers.

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Banknifty EOD Option Data Analysis:

  • Bank Nifty Options:
    • Put writers established strong support at 45,000.
    • Call writers created a hurdle at the 45,500 level.
    • Max Pain level observed at 45100 level
  • Market analysis:
    • The market is range-bound between 45,000 and 45,500.
  • Market analysis:
    • PCR(Put Call Ratio) has cooled down to 1.08.

Banknifty options

Bank Nifty 30 Min Chart Elliott Wave Analysis:

  • Impulsive (5)th wave in progress with sub 1-2-3-4-5 waves.
  • Wave 1: Started from 43,345, ended at 44,042 (approx. 700 points rally).
  • Wave 2: From 44,042 to 43,520 (approx. 500 points retracement).
  • Powerful Wave 3: Started from 43,520, reached 45,655 (approx. 1,100+ points rally).
  • Current 4th wave correction (Wave ABC) in progress till now low made 45073.
  • 50 EMA level near 45,030 expected to act as support.
  • If broken, the second support is around 44,840 (38.2% Fibonacci retracement level).
  • Corrective waves are time consuming.Banknifty

Conclusion:

  • The Inside Doji candlestick pattern suggests a period of consolidation and market indecision.
  • The continuous buying streak by FIIs indicates a positive sentiment and confidence among institutional investors.
  • The mixed performance of banking stocks calls for careful analysis and risk management.
  • Option data reveals range bond market 45000 to 45500 with important support and resistance levels for traders to consider.
  • The Put-Call Ratio (PCR), a measure of market sentiment, has cooled down to 1.08, indicating a balanced outlook.
  • The 30-minute chart analysis shows an ongoing impulsive (5)th wave with a corrective 4th sub wave on.
  • The 50-day Exponential Moving Average (EMA), located near 45,030, is expected to act as a support level.
  • Fibonacci retracement level of 38.2% comes at 44,840 is also expected to act as important support.
  • Market is “Buy on Dip” mode.
  • For Intraday Live Market update (6th July 2023)  : Live Update 6th July
  • For Daily Intraday live update visit Live Update tab : Live Update

Risk Management:

  • Trading in financial markets involves inherent risks, and caution should be exercised.
  • Traders should conduct thorough analysis, set stop

Disclaimer: The information presented in this article is for educational and informational purposes only. It should not be considered as financial or investment advice. Trading in the financial markets carries risks, and individuals should seek professional guidance and conduct their own research before making any investment decisions. The author and the platform assume no responsibility for any financial losses or damages incurred as a result of following the information provided in this article.

Happy Trading.

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