Tuesday, 4 October 2016

Bank Nifty Spot Outlook for 05th October

BANK NIFTY


Bank Nifty spot opened at 19641.75 and made a low of 19527.35 ,  then went up till 19747.45before closing at 19672.70.  Had mentioned long positions can be taken above 19648 and short positions can be taken below 19530 for the day.  Bank Nifty triggered our long trade today at opening and then took our SL and went down to trigger our short trade and again immediately reverse . Bank Nifty then again triggered our long trade and completed just 1 target . These swings were expected today due to RBI policy and hence had mentioned to use TSL while trading today in the previous post . Had mentioned in the previous post that Bank Nifty has completed our initial 3 targets as per our weekly levels and further longs position will get confirmed on sustaining above 19735 as per the weekly levels . As mentioned in the last post ' Bank Nifty may face some resistance near 19737 - 19792 levels tomorrow ' , and inspite of a rate cut by the RBI we saw resistance near this zone .  Was expecting some support near 19185 levels on the downside and so far Nifty has managed to hold it on closing expect for Thursday when it closed just 1 point lower and we have got nearly a 400+ points from the lows of last week . Incase we break the low of 19059 of September and sustain then we have the next support now near 18975 - 18845 level . Had mentioned in the previous posts 'Now Bank Nifty has resistance near 19315 - 19495 levels and once it breaks and sustains above it we can expect a test of 19645 - 19730 levels where it should face the next resistance' and Bank Nifty made a high of 19747 levels today before closing below 19700. Bank Nifty had been taking support near 18444 - 18537 levels in the entire month of August & has managed to take support near 19050 levels in September . Bank Nifty has closed comfortably above its immediate resistance at 19315 - 19495 levels today for the second day . Bank Nifty is now close to our trend continuation level of 19737 for this month and sustaining above it or closing consecutively above it can see a retest of 20080 levels again. Today Bank Nifty broke above our trend continuation level of 19737 but could not sustain and close above it and incase we are not able to sustain above it then we may retest the immediate support of 19495 - 19315 levels again.

For the month of October we can expect uptrend in Bank Nifty spot on a  consecutive closing above 19737 and downtrend to continue on a consecutive closing below 18835 . 

For today if Bank Nifty spot sustains above 19769 we can see a initial move upto 19871 & on sustaining above 19897 we may see further upmove  till 20081. Similarly if Bank Nifty spot sustains below 19576 we may see a initial move on the downside upto 19474 &  on sustaining below 19448 we may see further downmove till 19264

Bank Nifty Spot Levels for the day are

Long above 19769 for 19829
 – 19897 – 20081 , SL 19643

Short below 19576 for 19517 – 19448 – 19264 , SL 19702

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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.