Saturday, 21 January 2017

Weekly Spot Outlook of Bank Nifty for 23rd to 27th January


This week Bank Nifty spot went up 364 points and then went down by 119 points over last weeks close and finally ended the week with a loss of 91 points compared to last weekly closing . 

As per levels given for the previous week Bank Nifty Spot needed to break and sustain above 19065 to confirm uptrend and Bank Nifty spot needed to break and sustain below 18759 to confirm downtrend for the week. Bank Nifty made a high of 19276.50  and a low of 18793.05 

This week Bank Nifty triggered our long trade and completed 4 targets giving around 250 points from the long trade . Bank Nifty had corrected all the way till 17606.90 in the last week of December after caution was advised for longs in the month of September once 20080 was breached on closing  . We have now seen a correction of nearly 2400+ points from our caution level of 20080 given 16 weeks ago.  Bank Nifty took support just near our confirmation levels to short again of 17608 and reversed . Had mentioned in the previous weekly post 'Now Bank Nifty needs to break and sustain above 19058 for the upmove to continue till 19653 with resistance near 19172 - 19252 ' and we saw Bank Nifty break this resistance levels but was unable to sustain or close above it indicating some weakness . Now Bank Nifty has its immediate support near 18505 - 18805 levels where it had been taking resistance all through December .  Now for this week Bank Nifty needs to break and sustain above 19006 for the upmove to continue till 19606 with resistance near 19121 - 19252 levels . IF Bank Nifty sustains below 18635 then we can see a downmove till 18036 with support near 18521 - 18390 levels . Those who are intending to go long on corrections near the support levels of 18521 - 18390 should keep a cbsl of 18353 . Bank Nifty can test the supports levels of 18521 - 18390 on breaking and sustaining below 18747 . 

For the month of January we can expect uptrend in Bank Nifty Spot on a consecutive close above 18506 and downtrend continuation would be on a consecutive close below 17848 .

In the coming week Bank Nifty spot needs to break and sustain above 19006 to confirm uptrend and then one can expect a move till 19202 initially and breaking and sustaining above 19252 will give further confirmation of the next move which can take us till 19606. Similarly Bank Nifty spot needs to break and sustain below 18635 to confirm downtrend and then one can expect a move till 18439 initially and breaking and sustaining below 18390 will give further confirmation of the next move which can take us down till 18036.

Bank Nifty Spot Levels for the week are

Long above 18935 , Tgt 19006 - 19063 - 19121

IF Bank Nifty spot manages to get a close / sustain above 19202 then 

long again for 19252 - 19421 - 19606

Short below 18706 , Tgt 18635 - 18578 - 18521

IF Bank Nifty spot manages to get a close / sustain below 18439 then 

short again for 18390 - 18221 - 18036

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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