Bank Nifty spot opened at 19907.70 and made a high of 19922.70 , then went down till 19711.95 before closing at 19834.90 . Had mentioned long positions can be taken above 19894 and short positions can be taken below 19722 for the day. Bank Nifty triggered our long trade at opening but could not complete any target and took our SL and then triggered our short trade and again did not complete any target and took our SL . Bank Nifty was more volatile than the Nifty today as it has been outperforming the Nifty since a few days . Nifty has been unable to break above its trend continuation level of 8755 whereas today Bank Nifty has given a consecutive close above 19737 which was its trend continuation level for this month . Now we need to see tomorrow if Nifty plays catch up as it would be difficult for Bank Nifty to continue sustaining above this level if Nifty fails to break above 8755 and Bank Nifty can get dragged down if Nifty breaks below 8649 levels . Had been mentioning since some days that 'Incase we break the lows of 19059 of September and sustain then we have the next support now near 18975 - 18845 level ' and Bank Nifty made a low of 18824.40 and tested this level . If Bank Nifty breaks below 18975 - 18845 levels and sustains then we have a small support near 18715 - 18570 levels. Had also mentioned that 'IF Bank Nifty holds 18445 - 18975 levels then we may see a retest of 19315 - 19495 levels initially and on sustaining above it further till 19645 - 19730 resistance levels' and we saw Bank Nifty make a high of 19744 and also give a close above 19700 last week . As mentioned in the previous post ' If Bank Nifty manages to give a consecutive close above 19737 levels then we may test higher levels till 19880 - 20020 ' and today Bank Nifty made a high of of 19922.70 and took resistance but also managed to give a close above 19737 levels again . Those who are holding longs should move their cbsl to 19685 spot now. Bank Nifty has been clearly outperforming the Nifty and has given a consecutive close now above 19737 but Nifty is being a laggard as it unable to break above 8755 and if Nifty fails to do so and breaks below 8649 then it can drag Bank Nifty along with and we may see Bank Nifty test 19315 - 19495 levels .
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 19920 we can see a initial move upto 20011 & on sustaining above 20034 we may see further upmove till 20197. Similarly if Bank Nifty spot sustains below 19749 we may see a initial move on the downside upto 19659 & on sustaining below 19636 we may see further downmove till 19473
Bank Nifty Spot Levels for the day are
Long above 19920 for 19973 – 20034 – 20197 , SL 19809
Short below 19749 for 19697 – 19636 – 19473 , SL 19861
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