Nifty & Bank Nifty Prediction for Tomorrow 04-08-2020

After two cautious session last week finally Nifty moved below 11000 and closed at 10891. If you are reading my blog everyday then you will notice that since last two days data was indicating for some correction and today that happened. After good move in July'20 expiry Nifty started August Serious with Negative notes. And my view is also bearish on Nifty for the month of August'20. And reason for the same you can find in my blog on Elliott Wave pattern. Click here for view.

Nifty Medium Term Chart:-

According to above chart we can see that Nifty was in uptrend since March-20 to July-20 and traded within the trendline only. And today Nifty traded slightly below the lower trendline and if in coming session nifty sustain below 10900 then we are moving towards 10800-10700-10500 level. So be alert if you are long in market. After 10900 Next support for Nifty is around 10500-10550.

Option Chain Analysis for Expiry of 06 -08-2020

Huge short buildup today in Call option and unwinding in Put option. As per Option chain analysis one should think about shorting nifty on bounce. Put writers of 10900 & 11000 are sill trapped because there positions are open as you see above. If we get any gap up open then Nifty can test level of 10950-10970 but then selling presser can drag it towards lower level.  If you wan to view option chain data then please click here.

India VIX

As i mentioned in my earlier blog that confirmation from Volatility Index is awaiting and today we got some hint that market is going towards negative zone with increase in VIX by 4% that if from 24.19 to 25.13. Put call ratio reduced to 1.08. So for shorting one should wait for bounce in Nifty towards 10950-10970.

How to Trade for Tomorrow in Nifty:-

One should short in the range of 10970-10950 if we get any bounce with Stop loss of 11020 for target of 10850-10800.  Otherwise one can also short below 10900 with stop loss of 10930 for same target of 10850-10800.

Medium Chart of Bank Nifty:-

Bank Nifty closed near to its support level of 21200 at 21135. So for coming session  if Bank Nifty start trading below 21100 then we can see immediate level of 21000 to 20700. 

Option Chain Analysis for Expiry of 06-08-2020

From Bank Nifty Option chain we can see that 21000 is now make or break level. Because put writers are active in the zone of 20500 to 21000 and today it closed at 21072 that is near to 21000. And above 21000 call writers are active. So for coming session 21000 level will be very important to watch. If you wan to view option chain data then please click here.

How to Trade for Tomorrow in Bank Nifty:-

One can short in the range of 21300-21125 with stop loss of 21425 for target of 20890-20700-20500.
No Buy for tomorrow according to my view.

Disclaimer:- This is only my view for tomorrow. This is not paid advice nor tip. Only for learn and Earn Motive.)

Thank You..
Happy Trading.


Post a Comment