Nifty & Bank Nifty Prediction for Tomorrow 14-08-2020

Nifty, Bank Nifty, Option Chain, India VIX

Nifty-50

Today Nifty traded in very Narrow range as expected due to weekly Expiry and closed at 11300. However, if you look at the intraday movement Nifty corrected almost 90 points from day high which is negative indication. Since last 3 days Nifty fail to sustain above 11350-11370 zone and reversed back to 11270-11250 range. Today's session was only Option Oriented, price moved exactly as per Option Chain Data. And data was bearish in last hour but just because of Reliance slight up move Nifty manage to Hold 11300. One more reason for Nifty's failure to hold 11350-11370 is selling by DII/FII in Cash as well as future segment since last 3-4 days.

Nifty Medium Term Chart:-

From the above chart we can say that Nifty is in upward movement as far as it is trading between Upper and Lower Trendline zone. However, since last 20-25 days it it trading in range of 300 points that is from 11070 to 11370. We can see major market moves only above or below this levels. Till then it may consolidate between 11350-11250. For short term period major support is placed between 11250-11200 level once nifty start trading below 11200 we can see downside up to 11000. And once nifty manage to sustain above 11350-11370 on closing basis then we may see upside up to 11450-11500. I have posted interesting blog on Elliott Wave pattern which is currently formed in Nifty. If you have not read it yet then please click here to read.

Nifty Monthly Chart:-

The above chart is placed here just because one interesting level i have noted here. The trendline that you are looking on chart has worked as support level since 2014 and currently we are trading near to this trendline. Once we close above this trendline on monthly basis then we can say that we are again in bull market and same pattern continues further. But if fail to sustain above that then this same support line can act as a resistance line in future. So keep this level in mind in coming days. 

How to Trade Tomorrow in Nifty:-

For tomorrow resistance level remain same 11350-11370. Short entry can be initiated below 11270 stop loss 11300-11320 and target would be 11250-11220. For long entry one should buy only above 11350-11370 with stop loss below 11350 for target of 11400-11475.

Nifty Option Chain Analysis for 20-08-2020:-

Option Chain data clearly indicates that 11300 is now make or break level for Nifty in Next trading session. Call writers are active from 11300 to 11500 zone hence this level will act as a resistance zone. And on lower side put writers are active at 1100 to 11300 and therefore this level will act as a support. And below 11000 interestingly highest put writers are at 10400 strike price with 14 Lac open interest. Hence, coming week shall be very interesting. Put call Ratio at 1.32.Click here for option chain data.

India VIX:-

Volatility Index moving lower and reached to oversold zone so any time we can see spike in VIX and exactly with that market will decide its coming trend.

Bank Nifty

Bank Nifty is trading in range bound mode between 23000 to 21000. And today it is closed at 22196 that is near to 22200. Bank Nifty is weak as compared to Nifty that we can clearly see in chart. Also Nifty recovered almost 50% from March'20 lows and Bank Nifty recovered only 37%. Both recovery percentage are as per Fibonacci Retracement level. If bank nifty has to move high then it has to close above 23000 level. And break below 21000 opens the downside towards 210500.

Medium Term Chart of Bank Nifty:-



Bank Nifty Option Chain Analysis for 20-08-2020:-

Option Chain Data indicates that Bank Nifty may trade between 22200-22500 zone and major movement can be seen above 22500 and below 22200. Currently Bank Nifty closed at 22196 so in coming session if Bank Nifty start trading below 22200 then first it can take support around 22000. And on upper side it can move towards 22500-22700 and above that heavy call writers are active. The bigger range for Next week would be 22000 to 22800 for bank nifty.

How to Trade in Bank Nifty tomorrow:-

One can buy Bank Nifty above 22400 with Stop loss of 22200 for target of 22500-22700. And for short one cash go short below 22000 only with stop loss of 22200 for target of 21800-21700.


Thank You.

Happy Trading.

(Disclaimer:- Above is my personal observation on market. It is neither paid advice not tip. Please take decision as per your own risk.)


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