Saturday, 5 November 2016

Weekly Spot Outlook of Bank Nifty for 07th to 11th November

BANK NIFTY

This week Bank Nifty spot went up 111 points and went down 595 points over last weeks close and finally ended the week with a loss of 498 points compared to last weekly closing . 


As per levels given for the previous week Bank Nifty Spot needed to break and sustain above 19759 to confirm uptrend and Bank Nifty spot needed to break and sustain below 19353 to confirm downtrend for the week. Bank Nifty made a high of 19666.80 and a low of 18961.15 


This week Bank Nifty triggered our short trade and completed 4 targets giving around 350 points from the short trade  . Had mentioned in the weekly post 7 weeks ago too that 'Bank Nifty has some support near 20080 levels which is also our trend continuation level for September month and once it breaks and sustains below the level it will indicate weakness in the current upmove ' . Also had mentioned ' Incase of a break of 19050 level Bank Nifty has a small support near 18885 - 18835 levels' . We had seen Bank Nifty make a low of 18824.40 in the month of October and though Nifty has made a new low by 100 points compared to its lows of October , Bank Nifty is yet to break its lows of October and has been mildly outperforming the Nifty . Had mentioned in the weekly post 3 weeks ago that 'We have seen a correction now of nearly 1200+ points from our caution level of 20080 given 6 weeks ago'. Bank Nifty has so far corrected 245 points after closing / sustaining below our downtrend continuation level of 19207 for November compared to Nifty which was corrected 161 points after closing / sustaining below our downtrend continuation level of 8561 for November . Now Bank Nifty has immediate support at 18805 - 18505 and breaking and closing below it we can test upto 18185 levels on the downside . The current downmove appears to be saturating now and will continue only if Bank Nifty gives a consecutive close below 18505 .  Also we have the US presidential election results on 09th November which can be the trigger for the further move ahead.

For the month of November we can expect uptrend in Bank Nifty Spot on a consecutive close above 19840 and downtrend continuation would be on a consecutive close below 19207 .


In the coming week Bank Nifty spot needs to break and sustain above 19181 to confirm uptrend and then one can expect a move till 19311 initially and breaking and sustaining above 19343 will give further confirmation of the next move which can take us till 19578 . Similarly Bank Nity spot needs to break and sustain below 18935 to confirm downtrend and then one can expect a move till 18806 initially and breaking and sustaining below 18773 will give further confirmation of the next move which can take us down till 18538 .


Bank Nifty Spot Levels for the week are

Long above 19134 , Tgt 19181 - 19219 - 19257

IF Bank Nifty spot manages to get a close / sustain above 19311 then 

long again for 19343 - 19455 - 19578

Short below 18982 , Tgt 18935 - 18898 - 18860

IF Bank Nifty spot manages to get a close / sustain below 18806 then 

short again for 18773 - 18661 - 18538


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 .

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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.