Saturday, 4 February 2017

Weekly Spot Outlook of Bank Nifty for 06th to 10th February

BANK NIFTY

This week Bank Nifty spot went down 273 points and then went up by 521 points over last weeks close and finally ended the week with a gain of 489 points compared to last weekly closing . 


As per levels given for the previous week Bank Nifty Spot needed to break and sustain above 19916 to confirm uptrend and Bank Nifty spot needed to break and sustain below 19500 to confirm downtrend for the week. Bank Nifty made a high of 20229.65  and a low of 19435.45 


This week Bank Nifty initially triggered our short trade and completed 2 targets giving 150 points . It then reversed and triggered our long trade and completed 4 targets giving around 350+ 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 had seen a correction of nearly 2400+ points from our caution level of 20080 . 

Bank Nifty took support just near our confirmation levels to short again of 17608 and reversed to now make a high of 20229 gaining 2600+ points .Now for this week Bank Nifty needs to break and sustain above 20410 for the up move to continue till 21100 with resistance near 20542 - 20635 levels . IF Bank Nifty sustains below 19984 then we can see a down move till 19295 with support near 19852 - 19758 levels . Those who are holding longs or those who are intending to go long on a correction should keep a strict cbsl of 19552 for the positions.

For the month of February we can expect uptrend in Bank Nifty spot on a consecutive close above 19958 and we can expect downtrend in Bank Nifty spot on a consecutive close below 19072 . Had mentioned in January that we can expect uptrend in Bank Nifty spot on a consecutive close above 18506 and we got a move of nearly 1700+ points from there . 

Though Bank Nifty has given a consecutive close above 19958 , it is currently near a resistance zone of 20232 - 20427 and it needs to break and sustain above this zone to move up further. Incase Bank Nifty is unable to break and sustain above this range then we may see a correction from these levels till 19500 - 19300 levels . Those who are holding positional longs or those who are looking to enter fresh longs on any corrections this week should keep a strict cbsl of 19550 spot for their positions. 


In the coming week Bank Nifty spot needs to break and sustain above 20410 to confirm uptrend and then one can expect a move till 20635 initially and breaking and sustaining above 20692 will give further confirmation of the next move which can take us till 21100. Similarly Bank Nifty spot needs to break and sustain below 19984 to confirm downtrend and then one can expect a move till 19758 initially and breaking and sustaining below 19701 will give further confirmation of the next move which can take us down till 19295.


Bank Nifty Spot Levels for the week are

Long above 20329 , Tgt 20410 - 20476 - 20542

IF Bank Nifty spot manages to get a close / sustain above 20635 then 

long again for 20692 - 20886 - 21100

Short below 20065 , Tgt 19984 - 19918 - 19852

IF Bank Nifty spot manages to get a close / sustain below 19758 then 

short again for 19701 - 19507 - 19295


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.