Saturday, 26 January 2019

Weekly Spot Outlook Of Bank Nifty for 28th Jan to 01st Feb

BANK NIFTY

This week Bank Nifty spot went up by 166 points , then went down by 412 points  before finally ending the week with a loss of 341 points compared to last weekly closing.

As per levels given for the previous week Bank Nifty Spot needed to sustain and close above 27610 to confirm uptrend and Bank Nifty spot needed to sustain and close below 27300 to confirm downtrend for the week. Bank Nifty made a high of 27622.20 and made a low of 27045.20 for the week. 


Had mentioned in previous weekly post that Bank Nifty needs to sustain above 27610 to test 27775 - 27815 initially and above it further till 27955 - 28105 and Nifty needs to sustain below 27300 to test 27140 - 27100 initially and below it further till 26960 - 26805 , and we saw Bank Nifty was unable to sustain above 27610 on Monday and reversed to trigger our short trade and made a low of 27045.20 on Friday on the back of heavy selling in a few index stocks especially Zee & Maruti that pulled Nifty down and which took Bank Nifty down too . 


Now in the coming week Bank Nifty needs to break and sustain / close above 27230 for a test of 27355 - 27385 initially and closing above it we can see a further move till 27490 - 27605. Similarly on sustaining / closing below 27000 we can see a test of 26875 - 26845 initially and closing below it we can see a test of 26740 - 26625 . Those who are looking to enter fresh long positions should wait for Bank Nifty to sustain / close above 27230 and enter with a stoploss of 27150 for a initial target of 27355 - 27385 and look to hold further on getting a close above the initial target zone . Those who are looking to enter fresh shorts should wait for Bank Nifty to sustain / close below 27000 and enter with a stoploss of 27080 for a initial target of 26875 - 26845 and look to hold further on getting a close below the initial target zone . 


As mentioned " For the month of January , longs will be confirmed in Bank Nifty with a consecutive close above 27290 for a initial target of 27725 - 27835 and sustaining / closing above it we can see a further move till 28210 - 28620 . Similarly Bank Nifty shorts will be confirmed with a consecutive close below 26465 for a initial target of 26035 - 25925 and sustaining / closing below it we can see a further move till 25550 - 25135. " , and Bank Nifty triggered our monthly long trade and made a high of 27754.25 completing our initial target of 27725 - 27835 . 

Had mentioned in the previous weekly post "Bank Nifty has its immediate resistance zone now of 27725 - 27835 and it needs to give a strong  close above it to go further towards 28210 - 28620 else we can see selling pressure begin again." , and Bank Nifty took resistance well before 27725 and reversed .

Bank Nifty now has strong support at 27045 - 27000 and it needs to hold above these for a pullback to come and failing to do so we can see a further correction towards the levels mentioned above for the week.


Bank Nifty Spot Levels for the week are

Long above 27190 , Tgt 27230 - 27270 - 27305

IF Bank Nifty spot manages to get a close / sustain above 27355 then 

long again for 27385 - 27490 - 27605

Short below 27045 , Tgt 27000 - 26965 - 26925

IF Bank Nifty spot manages to get a close / sustain below 26875 then 

short again for 26845 - 26740 - 26625



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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