This week Bank Nifty spot went up 103 points and went down 389 points over last weeks close and finally ended the week with a gain of 38 points compared to last weekly closing
Last week we had mentioned that Bank Nifty Spot needs to break and sustain above 19093 to confirm uptrend and Bank Nifty spot needs to break and sustain below 18759 to confirm downtrend. Bank Nifty made a high of 19028.70 and a low of 18537.10 .
This week Bank Nifty confirmed our short trade and completed 4 targets giving around 280 points from the short trade. As have been mentioning in the previous 2 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 4 weeks now we have seen a high of 19158 , 19126.75 ,19078.50 & 19028.70 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 again this week and infact took support exactly at our confirmation level for further shorts for the week of 18537 and bounced back towards 19000 . Bank Nifty closed around 38 points above the previous weekly close . Though Bank Nifty has broken our trend reversal level of 18609 again once this week but has not given a close below it this week. Now this week we need to see if Bank Nifty spot can break and sustain above 19158 to test higher levels . Failing to sustain above 19158 will trigger profit booking once again. In the past 4 weeks Bank Nifty has made lower highs consecutively every week so one should wait for it to break and sustain above 19158 to take long positions . Our trend continuation level is 19297 so one should watch the price action once it reaches there too .
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 19158 to confirm uptrend and then one can expect a move till 19360 initially and breaking and sustaining above 19411 will give further confirmation of the next move which can take us till 19778 . Similarly Bank Nity spot needs to break and sustain below 18771 to confirm downtrend and then one can expect a move till 18568 initially and breaking and sustaining below 18517 will give further confirmation of the next move which can take us down till 18149.
Bank Nifty Spot Levels for the week are
Long above 19083 , Tgt 19158 - 19215 - 19275
IF Bank Nifty spot manages to get a close / sustain above 19360 then
long again for 19411 - 19586 - 19778
Short below 18845 , Tgt 18771 - 18712 - 18653
IF Bank Nifty spot manages to get a close / sustain below 18568 then
short again for 18517 - 18341 - 18149
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.