Saturday, 1 October 2016

Weekly Spot Outlook of Bank Nifty for 03rd to 07th October


This week Bank Nifty spot went down 843 points over last weeks close and finally ended the week with a loss of 616 points compared to last weekly closing . 

Last week we had mentioned that Bank Nifty Spot needs to break and sustain above 20098 to confirm uptrend and Bank Nifty spot needs to break and sustain below 19706 to confirm downtrend. Bank Nifty made a high of 19794.15 and a low of 19059.05 

This week Bank Nifty triggered our short trade and completed all targets giving around 700+ points from the short 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.  Bank Nifty traded between 19479 - 19795 till Thursday which was also the expiry day for September series in F&O segment and finally broke below our September month trend reversal level of 19495 on the news of the surgical strike by the Indian Army . Market was moving in a indecisive direction after making a high of 20575 at the start of the month and this correction was due to come after the rally witnessed. Incase of a break of 19050 level Bank Nifty has a small support near 18885 - 18835 levels .

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 19504 to confirm uptrend and then one can expect a move till 19734 initially and breaking and sustaining above 19792 will give further confirmation of the next move which can take us till 20209 . Similarly Bank Nity spot needs to break and sustain below 19068 to confirm downtrend and then one can expect a move till 18837 initially and breaking and sustaining below 18779 will give further confirmation of the next move which can take us down till 18363.

Bank Nifty Spot Levels for the week are

Long above 19420 , Tgt 19504 - 19571 - 19638

IF Bank Nifty spot manages to get a close / sustain above 19734 then 

long again for 19792 - 19991 - 20209

Short below 19151 , Tgt 19068 - 19000 - 18933

IF Bank Nifty spot manages to get a close / sustain below 18837 then 

short again for 18779 - 18581 - 18363

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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