Monday, 5 December 2016

Weekly Spot Outlook of Bank Nifty for 05th to 09th Dec


This week Bank Nifty spot went up 206 points and went down 344 points over last weeks close and finally ended the week with a loss of 260 points compared to last weekly closing . 

As per levels given for the previous week Bank Nifty Spot needed to break and sustain above 18742 to confirm uptrend and Bank Nifty spot needed to break and sustain below 18273 to confirm downtrend for the week. Bank Nifty made a high of 18713.10 and a low of 18163.80 

This week Bank Nifty triggered our short trade and completed just 2 targets giving us around 200 points from the short trade . Had mentioned in the weekly post 11 weeks ago 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 in the month of November . So far in December Bank Nifty has made a low of 18163.80 which is just above the low made on the news of demonetization in November . We have now seen a correction of nearly 1900+ points from our caution level of 20080 given 11 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 3 weeks ago in November 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 have seen 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 November month lows last week by making a low of 18163.80. Had mentioned last week  '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' and we saw Bank Nifty make a high of 18713 in the resistance zone of 18505 - 18805 and reverse again till below 18200 . Bank Nifty will keep facing pressure as long as Nifty keeps trading below 8362 - 8562 levels . Those who would have taken long positions in Bank Nifty in the correction last week should keep a cbsl of 18025 spot. 

For the month of December we can expect uptrend in Bank Nifty Spot on a consecutive close above 19181 and downtrend continuation would be on a consecutive close below 18075 .

In the coming week Bank Nifty spot needs to break and sustain above 18468 to confirm uptrend and then one can expect a move till 18700 initially and breaking and sustaining above 18759 will give further confirmation of the next move which can take us till 19180. Similarly Bank Nifty spot needs to break and sustain below 18025 to confirm downtrend and then one can expect a move till 17795 initially and breaking and sustaining below 17735 will give further confirmation of the next move which can take us down till 17315 .

Bank Nifty Spot Levels for the week are

Long above 18384 , Tgt 18468 - 18536 - 18604

IF Bank Nifty spot manages to get a close / sustain above 18700 then 

long again for 18759 - 18960 - 19180

Short below 18110 , Tgt 18025 - 17960 - 17890

IF Bank Nifty spot manages to get a close / sustain below 17795 then 

short again for 17735 - 17535 - 17315

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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