Bank Nifty generally moves in sync with Nifty so if you are long in Nifty your position should also long in Bank Nifty too. But this is not always true. I have seen many times when Bank Nifty moved up where as Nifty moving downward and vise-verse. But the good news is that most of the time it is not the case.
Now let's analyze what's there in Banknifty store for us for the coming week.
Bullish Scenario:
In the daily chart if we draw a falling channel starting from mid Aug 2015 (the sky blue line) we find that, Bank Nifty has clearly given a positive breakout and is trading out of the falling channel. Which is good for the bank nifty bulls. But currently dealing with resistance at around 16269 in Wednesday close, which is also the Fibonacci 38.2% retracement of Bank Nifty from it's all time high of 20907 to recent low 13407 hence expected to be a good and solid resistance. So if we get a gap up opening on Monday, Bank nifty can easily target around 16922 which is next logical resistance. We will cover this up more when talking about the bearish scenario. If we concur 16922 as well then next set of resistances will come at around 17302, 17442, 18234 and 18890 respectively as marked in the chart. Above all these said resistances will come the ultimate all time high of Bank Nifty at 20907.
Bearish Scenario:
If we draw a Descending Broadening Wedge starting from early Feb 2015 then we find on daily chart that Bank Nifty is still within this descending wedge pattern and the next resistance for Bank Nifty will be at the upper trend line of this falling broadening wedge which comes around 16922, which is also Fibonacci 61.8% starting from Jul 2015 high of 19229. So all these things make this level interesting to watch and act upon. Aggressive traders can trade around this level with proper stoploss and target the lower trend line of this falling broadening wedge. Bulls should be cautious at this level as very fast and deeper fall can be possible from this level. So watch this level carefully and trade cautiously.
Trade safe and keep checking this space for any updates on developing resistances in between.
Also check out our other publications on Nifty, Bank-nifty and stock specific at the left hand column. Cheers!!
Now let's analyze what's there in Banknifty store for us for the coming week.
Bullish Scenario:
In the daily chart if we draw a falling channel starting from mid Aug 2015 (the sky blue line) we find that, Bank Nifty has clearly given a positive breakout and is trading out of the falling channel. Which is good for the bank nifty bulls. But currently dealing with resistance at around 16269 in Wednesday close, which is also the Fibonacci 38.2% retracement of Bank Nifty from it's all time high of 20907 to recent low 13407 hence expected to be a good and solid resistance. So if we get a gap up opening on Monday, Bank nifty can easily target around 16922 which is next logical resistance. We will cover this up more when talking about the bearish scenario. If we concur 16922 as well then next set of resistances will come at around 17302, 17442, 18234 and 18890 respectively as marked in the chart. Above all these said resistances will come the ultimate all time high of Bank Nifty at 20907.
Bearish Scenario:
If we draw a Descending Broadening Wedge starting from early Feb 2015 then we find on daily chart that Bank Nifty is still within this descending wedge pattern and the next resistance for Bank Nifty will be at the upper trend line of this falling broadening wedge which comes around 16922, which is also Fibonacci 61.8% starting from Jul 2015 high of 19229. So all these things make this level interesting to watch and act upon. Aggressive traders can trade around this level with proper stoploss and target the lower trend line of this falling broadening wedge. Bulls should be cautious at this level as very fast and deeper fall can be possible from this level. So watch this level carefully and trade cautiously.
Trade safe and keep checking this space for any updates on developing resistances in between.
Also check out our other publications on Nifty, Bank-nifty and stock specific at the left hand column. Cheers!!
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