Sunday, 19 January 2020

Bank Nifty Spot Outlook for 20th Jan

In the previous session : 

Bank Nifty went down by 407 points and closed lower by 262 points on Friday compared to its previous day's  close . 

Bank Nifty made a life time high of 32613.10 on 30th December and has since then been trading sideways to negative. 

As per levels given for 17th Jan Bank Nifty triggered our short trade and completed 260 points  . 

For 20th Jan  :

Sustaining above 31695 enter for 31760 - 31835 - 32030

Sustaining below 31485 enter for 31420 - 31350 - 31150

  • Bank Nifty is trading in divergence to the Nifty which has been making new highs . Now Bank Nifty needs to hold above 31225 - 31445  and bounce to expect a sharp rally towards 32000 again . Incase it fails to do so then Nifty would find it difficult to sustain at higher levels.

How to use these levels 

  • Enter on sustaining above/below the levels mentioned and look to book partly/fully once at the 2nd target as its placed at the resistance/support  . Re-enter if price sustains above / below the 2nd target with a trailing stoploss of the entry levels. 

For this month :

  • Bank Nifty longs will get confirmed with a consecutive close above 32565 for a initial target of 32990 - 33100 and sustaining / closing above 33100 we can see a further move till 33465 - 33865 .  

  • Bank Nifty shorts will get confirmed with a consecutive close below 31760 for  a initial target of 31335 - 31225 and sustaining / closing below 31225 we can see a further move till 30860 - 30460 . 

  • Bank Nifty confirmed its monthly short trade and has completed its initial targets and also nearly tested its next targets with a low of 30899.55 

  • Post that holding above 31225 we got a bounce towards 32300+ levels . Nqw Bank Nifty has again given a close below 31760 again triggering its monthly shorts and a consecutive close below it will put pressure on the Nifty too to sustain at higher levels,

  • Now Bank Nifty has a congestion zone around 32565 - 32625 and it has to give a strong  close above 32625 for the upward momentum to continue .

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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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