Sunday, 9 October 2016

Weekly Spot Outlook of Bank Nifty for 10th to 14th October


This week Bank Nifty spot went up 530 points over last weeks close and finally ended the week with a gain of 114 points compared to last weekly closing . 

Last week we had mentioned that Bank Nifty Spot needs to break and sustain above 19504 to confirm uptrend and Bank Nifty spot needs to break and sustain below 19068 to confirm downtrend. Bank Nifty made a high of 19816.50 and a low of 19318 

This week Bank Nifty triggered our long trade and completed 4 targets giving around 350+ points from the long trade  . Had mentioned in the weekly post 3 weeks ago too that 'Bank Nifty has some support near 20080 levels which is also our trend continuation level for this month and once it breaks and sustains below the level it will indicate weakness in the current upmove ' . Have mentioned in the previous daily posts that 'once Bank Nifty breaks below our immediate support of 19702 - 19605 we can expect the next support of 19495 which is also our trend reversal level to be tested. Once it sustains below 19495 then we may see it test the next supports of 19315 - 19185 levels. Incase of a break of 19050 level Bank Nifty has a small support near 18885 - 18835 levels . In the week gone by Bank Nifty has managed to hold the lows made in the last week of September and has not broken even below 19315 levels. Bank Nifty broke above our trend continuation levels on 2 consecutive days but was not able to sustain or give a close above it this week. Market is looking for some triggers to make a strong move in any direction. We have a truncated week with our markets closed on Tuesday & Wednesday and we have the 2nd US presidential debate on Monday which would be looked at to provide some triggers by the world markets which inturn could get passed on to our markets too .The positve thing we can take from the week passed is that Bank Nifty did not break below 19315 levels even intraday and the negative thing is that though it broke above 19737 on 2 consecutive days it could not give a close above it . For now Bank Nifty is trading in a range of 19300 - 19800 and we would need to watch for a break of this range on closing to see the next move.

For the month of October we can expect uptrend in Bank Nifty Spot on a consecutive close above 19737 and downtrend continuation would be on a consecutive close below 18835.

In the coming week Bank Nifty spot needs to break and sustain above 19610 to confirm uptrend and then one can expect a move till 19831 initially and breaking and sustaining above 19887 will give further confirmation of the next move which can take us till 20287 . Similarly Bank Nity spot needs to break and sustain below 19190 to confirm downtrend and then one can expect a move till 18969 initially and breaking and sustaining below 18913 will give further confirmation of the next move which can take us down till 18513.

Bank Nifty Spot Levels for the week are

Long above 19530 , Tgt 19610 - 19674 - 19739

IF Bank Nifty spot manages to get a close / sustain above 19831 then 

long again for 19887 - 20078 - 20287

Short below 19270 , Tgt 19190 - 19126 - 19061

IF Bank Nifty spot manages to get a close / sustain below 18969 then 

short again for 18913 - 18722 - 18513

P.S. Always wait for the yellow highlighted levels to be crossed after taking a long/short position for confirmation of the trade . Once the highlighted levels are crossed and the next target is achieved move your Stoploss to the highlighted levels .

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Disclaimer : These are my personal views and one should do their own research before entering any trades based on them  . The use of the blog is agreement that the blog is for informational and educational purposes only and does not constitute advice in any form in the furtherance of any trade or trading decisions.

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