This week Bank Nifty spot went down 510 points and went up 125 points over last weeks close and finally ended the week with a loss of 27 points compared to last weekly closing
Last week we had mentioned that Bank Nifty Spot needs to break and sustain above 19119 to confirm uptrend and Bank Nifty spot needs to break and sustain below 18787 to confirm downtrend. Bank Nifty made a high of 19078.50 and a low of 18443.65 .
This week Bank Nifty confirmed our short trade and completed 4 targets giving 300 points from the short trade. As mentioned in the previous weekly outlooks that 'We are now near a strong resistance level of 19155 as per our levels and one should watch out for a consecutive close above this level for more immediate upside as we may see a small correction atleast till near 18600 - 18400 levels before moving up further' . For the past 3 weeks now we have seen a high of 19158 , 19126.75 and 19078.50 consecutively . So Bank Nifty has been taking resistance as expected near 19155 - 19185 levels even though Nifty has made new highs. Bank Nifty took support near the lower end of our expected support zone of 18600 - 18400 mentioned last week too . Bank Nifty made a low of 18444 and has given a good bounce to close just 27 points below our previous weeks close. Though Bank Nifty had given a marginal close below our trend reversal levels of 18609 this week on 2 days, we were still not able to get a close below the trend reversal level on Nifty which had left a doubt as to whether Bank Nifty could actually go down if Nifty is not yet ready to do so . Now this week we need to see if Bank Nifty spot can break above 19158 and also above 19297 to test higher levels.
Trend continuation in Bank Nifty Spot for the month of August would be on a consecutive close above 19297 and trend reversal would be on a consecutive close below 18609.
In the coming week Bank Nifty spot needs to break and sustain above 19093 to confirm uptrend and then one can expect a move till 19270 initially and breaking and sustaining above 19315 will give further confirmation of the next move which can take us till 19635 . Similarly Bank Nity spot needs to break and sustain below 18759 to confirm downtrend and then one can expect a move till 18581 initially and breaking and sustaining below 18537 will give further confirmation of the next move which can take us down till 18217.
Bank Nifty Spot Levels for the week are
Long above 19029 , Tgt 19093 - 19145 - 19197
IF Bank Nifty spot manages to get a close / sustain above 19270 then
long again for 19315 - 19468 - 19635
Short below 18823 , Tgt 18759 - 18707 - 18655
IF Bank Nifty spot manages to get a close / sustain below 18581 then
short again for 18537 - 18384 - 18217
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.