Bank Nifty Trade Setup for 10th October 2022

Bank Nifty is currently at a decision point on whether to go up / down from here. 10 EMA pull back in daily chart with the formation of a Hammer Candle gives a higher probability of market moving upside from here. The challenge in moving up is going to be the negative global situation with most of the indices in sell off after US Jobs Data announcement.

Predictions

- Charts : Bullish as of now & will remain with a bullish outlook until the swing low of 38835 is crossed on the downside.
- OI Data : Neutral
- FII Activity : Inconclusive as there was very minimal activity to be noted in Options & Futures in the Friday session.

Verdict
Global Scenario is looking clearly negative and the impact of it would surely be seen in our markets.
Swing High & Swing Low needs to be looked at clearly; once we get a clear break on either side, we can plan for an entry. A large enough gap down, but above or at the Swing low might lead to a gap fill as well. An open below Swing low or a break down of swing low would be a confirmation of bearishness and can lead to a larger downfall.

- Flat Open : Wait for Price action based signal and enter if moving down. If breaking the swing high, enter immediately.
- Gap Up : Most probably would lead to the retest of the Swing High before deciding on the continuation of trend. Large enough gap will lead to a sideways movement or stabilization at the higher levels.
- Gap Down : A gap down below Swing low can lead to a larger fall. An open at the Swing low and formation of a hammer can lead to a upside movement.

Weekly Outlook
Bank Nifty has formed a indecision or almost like a High Wave Candle for the past week. Only positive here is that it has closed above 10 EMA in weekly chart, which indicates a potential up move might be on the cards if we see an upside breakout.

https://www.tradingview.com/x/J5GotQMt/

Daily Outlook
Daily chart has formed a Hammer Candle above the 10 EMA which is an indication of a clear pull back and of potential bullish movement from there. Wait for the confirmation which is the break of high of Friday, once broken we may start looking for long positions.

https://www.tradingview.com/x/tgT6AbAJ/