Monday, 20 January 2020

Bank Nifty Spot Outlook for 21st Jan

In the previous session : 

Bank Nifty went up by 333 points and then went down by 540 points finally closing lower by 494 points on Monday 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 20th Jan Bank Nifty opened at 31923.95 which was also its high and then reversed to trigger our short trade and completed 425 points  . 

For 21st Jan  :

Sustaining above 31215 enter for 31290 - 31375 - 31600

Sustaining below 30975 enter for 30905 - 30820 - 30595

  • Bank Nifty was trading in divergence to the Nifty which had been making new highs . Bank Nifty broke below 31225 - 31445  for a shap bounce to be expected again and also pulled Nifty down along with it. 

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 had completed its initial targets and also nearly tested its next targets with a low of 30899.55 earlier this month and has again confirmed it and we can expect it to test 30860 - 30460 .

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

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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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