This week Bank Nifty spot went up 123 points and went down 842 points over last weeks close and finally ended the week with a loss of 780 points compared to last weekly closing .
As per levels given for the previous week Bank Nifty Spot needed to break and sustain above 20051 to confirm uptrend and Bank Nifty spot needed to break and sustain below 19427 to confirm downtrend for the week. Bank Nifty made a high of 19861.75 and a low of 18897.10 .
This week Bank Nifty triggered our short trade and completed 4 targets giving us around 530 points from the short trade . Had mentioned in the weekly post 9 weeks ago too that 'Bank Nifty has some support near 20080 levels which is also our trend continuation level for September month and once it breaks and sustains below the level it will indicate weakness in the current upmove ' . Also had mentioned in October' Incase of a break of 19050 level Bank Nifty has a small support near 18885 - 18835 levels' . We had seen Bank Nifty make a low of 18824.40 in the month of October and it has now made a low of 18143.70 till now in November . We have now seen a correction of nearly 1900+ points from our caution level of 20080 given 8 weeks ago. Bank Nifty has so far corrected 1065 points after closing / sustaining below our downtrend continuation level of 19207 for November . Had mentioned in the previous weekly post that' Now Bank Nifty has immediate support at 18805 - 18505 and breaking and closing below it we can test upto 18185 levels on the downside' and we saw a low of 18144 in the panic correction on announcement of demonetisation before it took support and reversed . Bank Nifty has been outperforming the Nifty for some time now and we can see that though Nifty is down by nearly 480+ points below our downtrend continuation level for this month whereas Bank Nifty is down by 248 points below its downtrend continuation level for this month. The current downmove will continue only if Bank Nifty gives a consecutive close below 18505 . Bank Nifty will keep facing pressure as long as Nifty keeps trading below 8362 - 8562 levels . If Bank Nifty holds 18805 - 18505 range then we can see a retest of 19500 - 19800 levels again . We are entering the expiry week for November series in F&O and we can expect some swings this week.
For the month of November we can expect uptrend in Bank Nifty Spot on a consecutive close above 19840 and downtrend continuation would be on a consecutive close below 19207 .
In the coming week Bank Nifty spot needs to break and sustain above 19289 to confirm uptrend and then one can expect a move till 19639 initially and breaking and sustaining above 19727 will give further confirmation of the next move which can take us till 20358. Similarly Bank Nity spot needs to break and sustain below 18629 to confirm downtrend and then one can expect a move till 18280 initially and breaking and sustaining below 18191 will give further confirmation of the next move which can take us down till 17560 .
Bank Nifty Spot Levels for the week are
Long above 19163 , Tgt 19289 - 19391 - 19493
IF Bank Nifty spot manages to get a close / sustain above 19639 then
long again for 19727 - 20028 - 20358
Short below 18755 , Tgt 18629 - 18527 - 18425
IF Bank Nifty spot manages to get a close / sustain below 18280 then
short again for 18191 - 17890 - 17560
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.