Monday, 28 November 2016

Weekly Spot Outlook of Bank Nifty for 28th Nov to 02nd Dec


This week Bank Nifty spot went up 117 points and went down 743 points over last weeks close and finally ended the week with a loss of 452 points compared to last weekly closing . 

As per levels given for the previous week Bank Nifty Spot needed to break and sustain above 19289 to confirm uptrend and Bank Nifty spot needed to break and sustain below 18629 to confirm downtrend for the week. Bank Nifty made a high of 19075.95 and a low of 18215.80 

This week Bank Nifty triggered our short trade and completed nearly 4 targets giving us around 330+ points from the short trade . Had mentioned in the weekly post 10 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 ' . We had seen Bank Nifty make a low of 18824.40 in the month of October and it has 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 10 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 weekly post 2 weeks ago 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 demonetization before it took support and reversed . Bank Nifty came close to testing its low for the month last week by making a low of 18215.80 and reversed to give a weekly close at 18507.30 just above 18505 . Had mentioned last week 'The current downmove will continue only if Bank Nifty gives a consecutive close below 18505' . Those who would have taken long positions in Bank Nifty in the correction last week should keep a cbsl of 18025 spot . IF Bank Nifty breaks / sustains above 18505 - 18805 levels then we can expect next resistance near 19060 - 19210 levels and above it we can see a retest of 19500 again . Bank Nifty will keep facing pressure as long as Nifty keeps trading below 8362 - 8562 levels . 

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 18742 to confirm uptrend and then one can expect a move till 18990 initially and breaking and sustaining above 19052 will give further confirmation of the next move which can take us till 19500. Similarly Bank Nifty spot needs to break and sustain below 18273 to confirm downtrend and then one can expect a move till 18025 initially and breaking and sustaining below 17962 will give further confirmation of the next move which can take us down till 17514 .

Bank Nifty Spot Levels for the week are

Long above 18652 , Tgt 18742 - 18814 - 18887

IF Bank Nifty spot manages to get a close / sustain above 18990 then 

long again for 19052 - 19266 - 19500

Short below 18362 , Tgt 18273 - 18200 - 18128

IF Bank Nifty spot manages to get a close / sustain below 18025 then 

short again for 17962 - 17749 - 17514

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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