- Important support level for BN is between 9200 - 9260.
- Early warning could be Daily candle closing below week low ema.
- Strength for BN above 9660.
- Price is in a range between Week High and Low EMA. If week low ema holds we may see an up move.
- Indicators too are not favoring bulls as of now.
CHART - I
CHART-II UPDATED
- Bank nifty futures has given a breakout above the neck line of an IHNS pattern.
- Now price is testing the breakout line.
- If price stays above the line it favor bulls.
- Price falling below the neck line and hours closing below it may lead to a correction.
- Bank Nifty Weekly stochastic shows that the selling may finish by next week.
- We have a support zone around 8806 level. But after that the Fib level and the next supports are way below near 8300 and 8150 levels.
- So price should stop falling near 8800 levels. If it goes below this level then the pain for bulls might continue.
- Look for daily reversal candles. We shall see some strength only above 9200.
- NIFTY WEEKEND UPDATE
- Bank nifty is trading closer to its previous resistance in weekly chart which may give support for this index. But problem here is the weekly chart or the daily chart is not showing any signs of reversal sight.
- Price continues to trade below 5 day low ema. Candlestick patterns too are bearish at the moment.
- Weekly chart shows a bearish triangle breakdown. Targets for this one is much lower if it plays out according to the rules.
- So wait for a daily Bullish reversal candlestick or close above 5 day high ema signs to confirm a reversal to go long.
- Those who are short should have trailing stop loss because of the oversold reading in daily chart.
CHART-II UPDATED
- Break of 9939 gave 9855. For bulls price has to stay above 9939 otherwise selling pressure will be there. Taking out 9855 again will give another Dip in favor of bears.
CHART-I
- Bears will be stronger below 9939.
- Break of the resistance line can give an up move in favor of bulls.
- 9920 Levels was acting as resistance in 2010.
- This level is giving support as of now.
- If This week candle closes above 9920 we might see decent bounce in major banking stocks.
- click the charts to enlarge and read the description clearly.
- Conclusion.
- Watch for level 11022 - 11426 and 200 DMA. Watch these levels on closing basis.
- Bank Nifty closed above 5 day high EMA and with a Bullish engulfing candle stick pattern.
- We may not give too much importance to the bullish engulfing because this pattern is more effective if it comes at the bottom of trend. Still i am pointing it out to show the positive momentum of the index.
- Stocks lime SBI made good moves yesterday that pushed Bank nifty higher. Those stocks should move even higher today if this mad run of Bank Nifty is to continue.
- Look for positive movements above 10360. Be cautious below this level.
