Nifty Bank Crashes After Union Budget

  • As Discussed in Last Analysis; A 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. Shorts hit the target on the downside, Neural Analysis worked perfectly and we saw big fall on 08 Jul, and once below 31000 had a big fall. Now Bulls have strong support in the range of 30384-30400, based on gann angles as shown in below gann angle chart. A fresh Short should be taken below 30377 for a move back to 30150/30000. A long should be taken above 30672 for a move back to 30816/30960/31104.

  • Nifty Bank July Future Open Interest Volume is at 18.9 lakh, with a liquidation of 0.26 Lakh, and with an increase in the Cost of Carry suggesting short  positions were closed today. Nifty Bank Rollover cost is @31207 and closed below it with a big fall.
  • 31500 CE is having highest OI @1.82 Lakh; resistance at 31000 followed by 31500.  30000-32000 CE added 3 Lakh in OI, so bears added positions in the zone of 31000-31500.
  • 30000 PE is having a highest OI @2.38 Lakh, strong support at 30500 followed by 30300. 30000-32000 PE liquidated at 0.93 Lakh OI, so bulls are creating strong support in the range of 30300-30500.

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

Sell below 30623 Tgt 30711,30800 and 30886 (Nifty Bank Spot Levels)