Bank Nifty Post Budget Day Analysis

  • As Discussed in Last Analysis Bank Nifty has formed doji on day before budget Bulls need to move above 31610 for a move towards life high of  31784/31964/32054. Bears will get active below 31490 for a move back to 31338/31250/31015. Budget day turned our to be non event for Bank Nifty as the range was just 374 points lowest in all budget we have seen so far. Bank Nifty Bulls got whipsawed above 31610 but bears were able to do 1 target on downside below 31490. Fresh long should be taken above 31660 for a move towards 31784/31964/32054. Shorts should be taken below 31305 for a move towards 31216/31128/31040/30952.

  • Bank Nifty July Future Open Interest Volume is at 19.2 lakh with addition of 0.69 Lakh, with decrease in Cost of Carry suggesting short  positions were closed today. Bank nifty Rollover cost @31207 closed above it. Low made on Friday 31207 and big rally.
  • 32000 CE is having highest OI @2.17 Lakh resistance at 31500  followed 32000. 30000-32000 CE added 0.94 Lakh in OI so bears added position in the zone of 31500-32000.
  • 30000 PE is having highest OI @2.2 Lakh, strong support at 30500 followed by 30300.30000-32000 PE added 1.52 Lakh OI so bulls making strong support in the range of 30800-30500.

Buy above 31500 Tgt 31610,31784 and  31825 (Bank Nifty Spot Levels)

Sell below 31390 Tgt 31300,31212 and 31110 (Bank Nifty Spot Levels)