Bank Nifty 02/02/21 21:27

Dated 02/02/2021 at 21.00 hour
BANK NIFTY DAILY

The above chart is the hourly chart of Bank Nifty February'21 contract.
The gann angle provide the support from the base of 20442 to 32899.
Subsequently, a correction in last week violation the angle to swing for correction.
One phase of rise was from 20442(24/09/2020) , 32899(21/01/2021) and to correction low 29661(28/01/2021).
As a result of the sharp rise that was seen in 2 days indicate a new phase.
A correction from 32861 to 29661 took 4 trading days.
The rise from 296661 took 2 days to cross and make a peak. This was done is less time and in 50% of the time which suggest a reversal and new phase of rise can be seen.
The base formation swing bottom are 29000 (22-12-2020) and 29661 28/02/2021).
Breakout above 32899 was witnessed on 01/02/2021 with a massive rise from day low of 30942 to 33484. Thereby providing the breakout above 32899.
The breakout impication is of the fall from 32899 to 29661. The 161.8% retracement of this fall is at 34930. The high registered on 02/02/2021 is 34740. The target of 161.8% is almost met against 34930.
Expect some resistance and profit booking pressure around 35000.
The Gann Angle plotted against the bottom of 29661 shows a steep rise.
A fall and close below 33600 will create a swing top situation and lower high and lower low can confirm it. A fall below 33600 can also show a breakdown of Gann angle support whih is around 33600.
Traders long can take profits at 35000 or rise the move with a stop loss of 33600. Alternatiely, we shift to hourly chart to get stop loss higher and lock trading profits. Also to get early alerts of the reversal from the steep rising phase.


Zoomed Hour Chart

The zoomed hourly chart showed a peak at 33740 at 10.00 am candle.
Further Bank Nifty remained in 10.00 am candle range of 34740-33601.
The hourly chart has the higher bottom at 33793.
A fall and close below 33793 on hour chart will show a correction and retracement of the rise from 29661 to 34740.
The correction can emerge in term time and price.
Support of daily and hourly chart is the gap. The gap is at 33600-33422.
It may happen that correction can be more in terms of time then will remain in the range between 35000 to 33400.
If support of 33400 is violated then retracement level will be placed at 32817-32215-31640.
In the even of a breakout above 34740 expect 35000-35500 range at least and can extend on hour chart to 36300.
Strategy for 03/02/2021
If Bank Nifty trades above the open of the day and above 34740 then trade long with low of the day stop loss or 34400 whichever is lower when 34740 is being crossed.
To expect 35000-35500 range at least and to an outer extent for the day to 36300.
Intra-day traders and 1-2 days trading who are already long and holding the same can revise the stop loss very tight to 34234 and a comfortable stop loss at 33400. All this will depend on the holding cost of trader to minimize risk and lock profits.
Near term to short term traders can accumulate at retracement of 32817-32215-31640 as the opportunity arises.
Intra-day traders can check the retracement and see if on hour chart a swing bottom is formed at retracement. A swing bottom on hour chart at retracement can provide a new entry opportunity.