BANK NIFTY
This week Bank Nifty spot went down by 203 points , then went up by 1041 points before finally ending the week with a gain of 952 points compared to last weekly closing. This is the first positive weekly close after 5 consecutive negative weekly closing.
As per levels given for the previous week Bank Nifty Spot needed to sustain and close above 24745 to trigger uptrend and Bank Nifty spot needed to sustain and close below 24140 to trigger downtrend for the week. Bank Nifty made a low of 24240.05 and made a high of 25484.20 for the week .
As mentioned in the previous weekly post " Now in the coming week Bank Nifty needs to break and sustain / close above 24745 for a test of 25065 - 25145 initially and closing above it we can see a further move till 25420 - 25720 . Similarly on sustaining / closing below 24140 we can see a test of 23825 - 23745 initially and closing below it we can see a test of 23470 - 23170. Those who are looking to enter fresh long positions should wait for Bank Nifty to sustain / close above 24745 and enter with a stoploss of 24535 and look to hold further only on getting a close above 25065 - 25145 zone. Those who are looking to enter fresh shorts should wait for Bank Nifty to sustain / close below 24140 and enter with a stoploss of 24350 and look to hold further only on getting a close below 23825 - 23745 zone . " , and Bank Nifty took support 100 points above our weekly short confirmation and bounced back to trigger our weekly long trade and did 850 points .
In the past 5 weeks Bank Nifty has given a negative close on a week to week basis by 580.30 , 317.60 , 1566.95 , 477.05 , 676.40 points. After such a rapid fall in recent weeks we can expect a small pullback unless there is a strong fresh negative news which comes. On the upside Bank Nifty has immediate resistance near 25500 - 25570 levels and above it near 25780 - 25840. One can expect selling pressure near the resistance levels .
Now in the coming week Bank Nifty needs to break and sustain / close above 25840 for a test of 26310 - 26430 initially and closing above it we can see a further move till 26830 - 27275. Similarly on sustaining / closing below 24950 we can see a test of 24485 - 24365 initially and closing below it we can see a test of 23960 - 23520 . Those who are looking to enter fresh long positions should wait for Bank Nifty to sustain / close above 25840 and enter with a stoploss of 25530 and look to hold further only getting a close above 26310 - 26430 zone . Those who are looking to enter fresh shorts should wait for Bank Nifty to sustain / close below 24950 and enter with a stoploss of 25260 and look to hold further only on getting a close below 24485 - 24365 zone .
Also as mentioned at the beginning of the month " For the month of October Bank Nifty monthly longs will be confirmed with a consecutive close above 25780 for a initial target of 26480 - 26655 and sustaining / closing above it we can see a further move till 27255 - 27915. Similarly Bank Nifty shorts will be confirmed with a consecutive close below 24460 for a initial target of 23765 - 23585 and sustaining / closing below it we can see a further move till 22985 - 22325. For the month of September Bank Nifty triggered our short trade and did 2000+ points on the short side . Now Bank Nifty has immediate resistances for a bounce back near 25320 - 25440 . " , and Bank Nifty failed to give a consecutive close below 24460 and bounced back to test the immediate resistance zone of 25320 - 25440 and also closed within it . Now if it sustains / closes above 25440 then we can see a test of our monthly long confirmation level of 25780 where we can see some selling pressure . Bank Nifty has been holding more strongly this month compared to the Nifty so far . We will need a consecutive close above 25780 to take long positions .
Bank Nifty Spot Levels for the week are
Long above 25670, Tgt 25840 - 25975 - 26115
IF Bank Nifty spot manages to get a close / sustain above 26310 then
long again for 26430 - 26830 - 27275
Short below 25120 , Tgt 24950 - 24815 - 24680
IF Bank Nifty spot manages to get a close / sustain below 24485 then
short again for 24365 - 23960 - 23520
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 and continue trailing it further .
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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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