Nifty Bank Analysis for Tuesday Intraday Trade Setup – 12/09/2023

Bank Nifty Analysis: Intraday Trade Setup and Technical Analysis

Bank Nifty Analysis: Intraday Trade Setup and Technical Analysis

On Monday, Nifty 50 achieved a significant milestone by not only reaching a new record high but also surging beyond the historic 20,000 mark. The session ended with a substantial gain of 176 points, marking the seventh consecutive day of positive gains. Meanwhile, Bank Nifty had an exceptional day, closing at 45,570, a remarkable 414 points above the previous day’s closing price.

Bank Nifty Opening and Intraday Movements

Bank Nifty initiated the trading session at 45,353, positioning itself within the range defined by the previous day’s high and low. For some time, it remained in consolidation mode. However, a pivotal moment occurred when it broke above the 45,450 level, triggering a significant rally. This rally propelled Bank Nifty to a peak of 45,630 before ultimately closing at 45,570.

Daily Time Frame Analysis

In an analysis of the daily candlestick chart, it becomes evident that Bank Nifty faced substantial resistance within the range of 45,600 to 45,662. Notably, the level of 45,662 emerged as a formidable resistance level, while 45,235 emerged as a crucial support level within the daily timeframe.

15-Minute Time Frame Analysis

Transitioning to the 15-minute candlestick chart, which is highly relevant for intraday trading, reveals the significance of 45,662 as a robust resistance level and 45,235 as a dependable support level for Bank Nifty. Interestingly, Monday’s intraday low coincided with the support level of 45,235, while the intraday high of 45,630 represented an immediate resistance level.

An intriguing observation from the day’s trading pattern on the 15-minute timeframe is the formation of a flag pattern. During the afternoon session, Bank Nifty breached the high of this flag pattern, reaching 45,630 before settling at 45,570 at the close of the trading session.

Option Chain Analysis for Bank Nifty

An examination of the Option chain data on the National Stock Exchange (NSE) provides valuable insights. Notably, there is significant put writing observed at the 45,500 and 45,000 levels, with 2,37,134 and 2,03,468 contracts, respectively. This substantial put writing activity underscores the 45,500 level as a robust support zone. Conversely, the maximum call writing is concentrated at the 45,800 and 46,000 levels, with 1,65,564 and 2,16,023 contracts, respectively, signifying the 46,000 level as a formidable resistance.

Trade Setup for Bank Nifty on Tuesday

In preparation for trading Bank Nifty on Tuesday, three specific conditions should be considered:

  1. Flat Opening: In the event of a flat opening where Bank Nifty consolidates within the range defined by the day’s high and low, traders should closely monitor the 45,662 level. A bullish breakout above this level, confirmed by the presence of a bullish candle, could potentially lead to an upward movement of 100 to 150 points. Conversely, if consolidation results in the formation of a bearish candle, traders may anticipate a swift downward movement of 150 to 200 points.
  2. Gap Up Opening: Should the trading session commence with a gap-up opening above 45,781, traders are advised to exercise caution and await clear price action confirmation. Sustained trading above this level could initiate a rapid upward movement of 150 to 200 points. Conversely, if Bank Nifty fails to maintain its position above 45,781 and forms a bearish candle, a downward movement of 150 to 200 points may ensue.
  3. Gap Down Opening: In the scenario of a gap-down opening at 45,339, traders should be patient and await definitive price action signals. A bullish candle emerging after a period of consolidation may signal an upward movement of 150 to 200 points. Conversely, if a bearish candle breaks below the day’s low, traders can expect a downward movement of 150 to 200 points.

In summary, Tuesday’s Bank Nifty trading session offers multiple potential scenarios, each of which requires careful analysis and consideration to make informed trading decisions.

Disclaimer: The information provided here is for educational purposes only and should not be considered financial advice. Always conduct thorough research and consider consulting a financial professional before engaging in algorithmic trading.

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