Saturday, 17 December 2016

Weekly Spot Outlook of Bank Nifty for 19th to 23rd December


This week Bank Nifty spot went down 574 points over last weeks close and finally ended the week with a loss of 383 points compared to last weekly closing . 

As per levels given for the previous week Bank Nifty Spot needed to break and sustain above 18915 to confirm uptrend and Bank Nifty spot needed to break and sustain below 18480 to confirm downtrend for the week. Bank Nifty made a high of 18616.05 and a low of 18122.10 

This week Bank Nifty triggered our short trade and completed 4 targets giving us around 350+ points from the short trade . Bank Nifty had corrected all the way till 18824.40 in the month of October and it had corrected further till 18143.70 in the month of November after caution was advised for longs in the month of September once 20080 was breached on closing  . We saw a panic low of 17952.60 in December on the news of no rate cut by RBI . We have now seen a correction of nearly 1900+ points from our caution level of 20080 given 13 weeks ago.  Have been mentioning in weekly posts  '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 are seeing Bank Nifty take resistance in this range and being unable to break and close above it .  Bank Nifty needs to break and sustain above this range in the coming week for further upmoves . Bank Nifty will keep facing pressure as long as Nifty keeps trading below 8362 - 8562 levels . As mentioned in the previous weekly post too 'Those who would have taken long positions in Bank Nifty in the correction should keep a cbsl of 18025 spot' which has held so far and now one should watch for a break of 18805 to stay long and if unable to do so this week too then should book profits if not already booked.   IF Bank Nifty sustains above 18805 this week then we can expect the next initial resistance near 18970 - 19180 . Till Bank Nifty spot does not give a consecutive close above 19181 this month we can expect the upmoves to be sold into.

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 18490 to confirm uptrend and then one can expect a move till 18670 initially and breaking and sustaining above 18720 will give further confirmation of the next move which can take us till 19050. Similarly Bank Nifty spot needs to break and sustain below 18140 to confirm downtrend and then one can expect a move till 17955 initially and breaking and sustaining below 17910 will give further confirmation of the next move which can take us down till 17580 .

Bank Nifty Spot Levels for the week are

Long above 18420 , Tgt 18490 - 18540 - 18595

IF Bank Nifty spot manages to get a close / sustain above 18670 then 

long again for 18720 - 18875 - 19050

Short below 18205 , Tgt 18140 - 18085 - 18030

IF Bank Nifty spot manages to get a close / sustain below 17955 then 

short again for 17910 - 17750 - 17580

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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