BankNifty-Stock Market Trend Analysis

BankNifty-30 Days Historical Data with DMAs for Stock Market Trend Analysis

The following historical data is self-explanatory and self-guided toolkit for investors, traders and new entrants. If key figures are observed carefully and in detail, with reference to the ongoing financial policies of the respective country, geopolitical situations emerging across the globe, FED policy declarations, etc., it can provide valuable insights into market trends.

Pay attention to key figures, such as the nearest DMA and the previous high and low figures by plotting them on the daily chart along with Open interest in calls and puts will help in determining support and resistance levels, as well as identifying breakout and breakdown levels.

Unless the market rebounds, it may remain choppy and sluggish (slow-moving). In this case, one can continue tracking the trigger points or news (Negative or Positive News in pipeline) that could move the market significantly in either direction. A slow-moving market can be a dull and tedious wait. However, buying and selling in individual stocks may be seen.

 

Guidelines to use above data for Stock Market Trend Analysis

Note: After range bound of market for a day or two, intraday high range trade is witnessed, based on the trend of the market. Broadly trend of the Stock Market can be predicted by Nearest Index Spot’s Strike Price Open Interest of Calls and Puts and Total Open Interest. PCR below 75% broadly indicates a Bearish Trend Reversal and PCR above 90% indicates Bullish Trend Reversal.  

1. Regular study and analysis of historical data provide a guideline for market prediction.
2. Levels of DMAs, Previous High, Low to be observed by plotting them on yearly and intraday charts, if these levels are broken, may lead market to breakout or breakdown. These figures will give an idea of Support and Resistance and Reversal Levels.
3. When downside movement starts, Index may find support of nearest DMA or previous low, if broken, further downside may be seen.
4. When upward movement starts, Index may find resistant of nearest DMA or previous high, if broken, further upside may be seen.
5. For accurate results, corelate Index with change in Open Interest (Call & Put) of nearest Strike Price and Total Open Interest for Strong Support or Resistant.
6. It is strongly advised to consider other parameters including Financial Policies of respective countries and GEO Political situations across the Globe.
7. Once the trend of market is clear, any opposite action of market may be used to take position for successful trades as per Trend.
8. Trend of Stock Market may be detected through significant change in open interest of calls and puts.

Disclaimer

The content provided on this website is for informational purposes only and should not be construed as professional financial, investment, legal, or tax advice. The information presented on this site is based on the author’s opinions, research, and publicly available information, and is intended for general guidance. It is not a substitute for consulting with a qualified financial advisor or other professional.