Nifty & Bank Nifty Prediction for Tomorrow 01-09-2020

Nifty-50:-

Today Nifty lost almost 260 Points and closed at 11387 that is below support. Since morning market remain negative and seen high selling pressure. During Intra day Nifty lost almost 450 points from high of 11794 to low of 11330 which is very negative sign for coming trading session. And interesting part is that selling pressure was intact in majority of sector including financial sector and indicating reversal of trend if remain below 11400 in coming session. And one more negative point is India VIX with 25% increase during the day.

Daily Chart of Nifty-50:-

As per Daily Chart Nifty has formed bearish candle and lost gain of last week and closed near support level at 11387. In the month of August'20 Nifty struggled around 11370-11400 level and then we have seen breakout above 11400 but today closed below 11400 indicating failure of breakout. Hence, for coming session if it start trading below 11350 then we may see previous lower levels of 11270-11200. For time being fresh buying can be seen only above 11500.

Option Chain of Nifty for Expiry of 03-09-2020:-


As per Option Chain Analysis of Nifty data are not good for Bulls because bulls are heavily trapped in the range of 11400 to 11600 that you can see above. And during the day there was unwinding in Put. And strong call writing seen today at 11500/11600/11700 . Looking to data we may see sell on rise king of price action in coming trading session. Because the moment Nifty start moving up Put writers unwind their position and fresh call writing can be seen. As per my view market may open Gap Up tomorrow and then selling will start and therefore i suggested to sell on pullback towards upside with best risk reward ratio. Click here for option chain data.


INDIA VIX:-

Since Morning session Volatility Index was indicating downside and yesterday also i have mentioned that VIX at oversold zone and Put call ratio at overbought zone and therefore we may see profit booking at each up move. And the moment market open today it started falling and VIX started increasing. Now, we can see upside in market only when VIX start falling down, otherwise market will be sell on rise.


How To Trade In Nifty for Tomorrow:-

One can sell on pullback towards 11475-11450 in coming session, at this level risk reward will be favourable with Stop Loss of 11500 for Target of 11400/11350. 

Or One can sell below 11370 with Stop Loss of 11430 for Target of 11350/11300.

After Today's fall fresh buying can be initiated only above 11500.


Bank Nifty:-

Bank Nifty formed "Bearish Engulfing Candle" today and lost all gain of  Previous Breakout candle of 28/08/2020. Very negative price action observed today in Overall Financial Sector. According to Price action of 28/08/2020 Bank Nifty should at least hold level of 24000 for relief, but today made low of 23385 and closed at 23754 that is below 24000. Hence, for coming session fresh buying can be seen only above 24000/24200 level. Till that level we can see sell on each rise.


Daily Chart of Bank Nifty:-


With Bearish candle on Daily Chart Bank Nifty has manage to close above support of 23500 but below 24000. And for coming session if it starts trading below 23500 then we may see previous swing low of 22600/22500 level. And above 24000/24500 again fresh buying can be seen.


Option Chain of Bank Nifty for Expiry of 03-09-2020:-

In Bank Nifty also Bulls are trapped in the range of 23500/24000 and unwinding Put Strike price. Heavy call writing in the range of 24000 to 25000 will limit the upside of Bank Nifty in coming trading session. From 23000 to 25000 at each 500 point gap Call writers are active, hence follow sell on rise strategy in coming session. Click here for option chain data.


How Trade in Bank Nifty for Tomorrow:-

One Can sell Bank Nifty in the range of 24000-23800 with Stop loss of 24200 for Target of 23600/23500. 

For Fresh selling best entry level is 23500 with Stop Loss of 23600 for Target of 23300/23200.

Fresh Buying can be seen only above 24000/24200.


Thank You..!!

Happy Trading..!!

"Learn & Earn"...!!!


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(Disclaimers:- Above is my personal view on market for tomorrow. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).


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