BankNifty Multi Time frame Perspectives. Trading Ideas to plan your setups.

Hell it’s been ages since I posted here, although Have been regular on twitter and facebook, but it’s worth an idea to put down some perspectives on multi timeframes to help plan the trade over the next week and the next month or so.

Lets drill it down from a top down approach and try and establish how the levels converge. We will typically use price action charts, retracements and some levels.

On the long term charts the monthly charts here Banknifty (BNF ) Has formed a clear top with a tweezer top formation that clearly establishes a bearish reversal pattern and is usually followed by 2-3 months of intense selling and pullbacks marked at the lower end of the top. We had a follow up selling month already. Based on this chart pattern until 26000 levels are crossed its going to be a sell on rise for larger time frame traders.  On the downside there is a definite possibility to test 22600 levels.

BankNifty Monthly Charts

 Coming to Daily charts, we seem to have formed a temporary base near 24100-150 levels and until that level holds, its likely for a short to midterm pull back on the charts, whether that can last a few days to a few weeks, it will unfold over the next week or so. On the upside we have 3 primary zones to watch out for 25000 being the first one, then 25450 levels and then above that a tight band of 25650-25850 zones. Which is unlikely to cross for the downside view to hold. How strong will the pullback will be determined by local and global cues. The above scenario becomes null if we break below 24100 zones. In that case its time to look from the longer term perspective.

Banknifty Futures Daily Charts

Coming to immediate short term charts, last week we almost closed at the highest traded zone of around 24300 zones. Long term players are likely to emerge if we manage to move above 22380 levels, below that expect market to remain non conclusive.  Moving above that we can hit the 24650 & 24850 range on the upside, where it would be prudent to book gains and look for a reversal opportunity for swing players. Again this hypothesis holds good if we manage to hold the 24100 zones. If that zone fails below that we should aim for 23600 and 23100 levels.

Banknifty Futures short Term Charts

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Where are the Markets Headed Next? How to handle the Volatility

BankNifty Futures: 18th was a copybook trading day and fortunately we were on the right side of the trade as well. check our pre trade analysis at (https://www.facebook.com/powertrade.trading/)

This can be primarily be attributed to conviction in the plan as much as right analysis for the plan. Why did we mention that 17140 is a key zone?( we know the market reaction once that was breached)

If you check the hourly candles there were multiple instances when that was respected and it was building up supply there. beyond that we saw a straight dash to 16900, to be honest the ease with each was broken was surprising.

BankNifty Futures Price Chart Analysis

Now whats next?  The new Trend decider now is 16940-50 levels if you observe the charts.  until we manage to hold or trade below it pull backs on intraday basis can be shorted.  Downside targets can be near 16650 or lower. It will be key to observe whether the breach today was an aberation or a build up of new trend. Hence prudent would be to see how that level is treated. If markets moves and holds above it can give a good pull back trading opportunity to the contrarian players. 

NIFTY Futures: Just yesterday we discussed that 7850 continues be the achillies for NIFTY and until convincingly taken out we are not going to see aconclusive breakout. On the downside we discussed a break of 7820 can provide a low risk trade and what a trade it was , a trade which yielded nearly 80-100 points with a 30-40 points risk.  now that NIFTY has breached 7800, 7780-7800  range will be the trend decider. If markets sustain above it expect a reversal in trends.Below it markets will continue to trade in the direction that has emerged today. 7850 will be a tough swing hurdle going forward. A break above it will only signal a resumption for the bulls