How to trade Banknifty for week starting 06/06/2016

Bullish Possibility: 

Last week in Deb Trades we mentioned that, 

As can be seen from the above chart till Banknifty is  trading above the upper blue line bulls are safe. The first support zone is at 17442-17302, next 16997 and final support zone is at 16343-16197. Targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553

Last week Banknifty opened at 17581 made a low at 17350, high at 17762 before finally closing at 17681. Hence a weekly gain of just 100 points and a range of 412 points. For ST positional traders this is a range move.

Now let's analyze Banknifty for this week.

Banknifty Daily Chart

As can be seen from the above daily chart of Banknifty, it is clearly moving in an ascending channel (black lines) and the targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553 while supports lies at 17442-17302, next 16997 and final support zone is at 16343-16197.

Bearish Possibilities:

Same as last week:

Bearish possibilities are currently muted now as long as we trade above the upper blue line of the falling broadening wedge pattern (blue lines). But in case if we then the immediate target would be 16343 and 16196.

Summary:  

1) Banknifty is bullish still within the ascending channel.
2) The first support zone is at 17442-17302, next 16997 and final support zone is at 16343-16197.
3) Targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553

Final Words: 

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column.

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How to trade Banknifty for week starting 30/05/2016

We posted in our last weekly update on Banknifty on 16/05/2016 that 

for bullishness Banknifty needs to trade above this blue resistance line which for next week lies at 16652 as can be seen from the above chart.

 And also

1) Play long with 16652 as SAR with 50 points filter.
2) Banknifty in consolidation move for the last 1 month, decisive move ahead.

Now see what happened in the below daily chart of banknifty:

Banknifty Daily Chart

This is a clear breakout of Banknifty trading well above the falling broadening wedge pattern (blue lines). Now let's analyze Banknifty for the coming week.

 Bullish Possibility:

As can be seen from the above chart till Banknifty is  trading above the upper blue line bulls are safe. The first support zone is at 17442-17302, next 16997 and final support zone is at 16343-16197.
Targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553

Bearish Possibility: 

Bearish possibilities are currently muted now as long as we trade above the upper blue line of the falling broadening wedge pattern (blue lines). But in case if we then the immediate target would be 16343 and 16196.

Summary:

1) Banknifty is bullish above the upper blue line of the falling broadening wedge pattern.
2) The first support zone is at 17442-17302, next 16997 and final support zone is at 16343-16197.
3) Targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553

 Final Words:  

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Banknifty for week starting 09/05/2016

Bullish Possibility:
We will start with what we discussed last week:

Quote:
last week we achieved 16922 moved pass up to 17029 and whipsaw 16922 and fall below it. Hence a Breakout failure at 16922 level. Hence no bullish possibility till we are below 16922. Bank Nifty will be bullish only above 16922. As mentioned earlier post *IF* we have a successful breakout above 16922 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.
Unquote:

Now let's explore what is there for us in Banknifty Store for this week.

Banknifty Daily Chart

As can be seen from the above charts bullish possibilities are now muted as Banknifty has broken down the ascending wedge pattern which is bearish. A slight bullish possibility exists only if Banknifty breaks the falling red trendline. But that can not be confirmed till Banknifty is below 16922 or the top line of the blue descending broadening wedge pattern. So a bullish attempt can be made but only above 16400 not below it while keeping a close key on the key resistance level 16922.

Banknifty Hourly Chart

Bearish Possibility: 
Banknifty is bearish below 16400 (the red down trendline + filter) particularly since this has broken down the rising wedge pattern (yellow and black raising resistance and support lines respectively). The initial target could be the green line in the chart, at around 15944. The next targets are 15673 and 15437 respectively as marked on the chart. If 15437 also broken then the ultimate target would be the bottom blue line of the descending broadening wedge pattern which come around 13350 currently.

Summary: 
1) Below 16400 Banknifty is bearish.
2) Above 16400 Bullish attempt can be made but with cautious as 16922 will be the target or next resistance level.
3) Hence if short manage your shorts with 16400 as SAR (stop and reverse) with 50 points filter.

Final words: 
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!! 

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How to trade Banknifty for week starting 02/05/2016

Bullish Possibility: 

Bank Nifty Daily chart by Deb Trades

Not much to update for this week. We already have discussed what Banknifty will do this week couple of weeks back. Hence let's start with what we mentioned in our earlier post,

Quote

Bank Nifty has closed above the falling trend channel (the sky blue lines) which is positive. As discussed in previous post this will eventually bring 16922 which is the next target / resistance level. 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.

Unquote

So last week we achieved 16922 moved pass upto 17029 and whipsaw 16922 and fall below it. Hence a Breakout failure at 16922 level. Hence no bullish possibility till we are below 16922. Bank Nifty will be bullish only above 16922. As mentioned earlier post *IF* we have a successful breakout above 16922 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 Possibility:  Below 16922 Banknifty is bearish and can target 16289, 15944, 16673 and 15438 respective as marked in chart or even can move into a consolidation range.

Possible Wolfe Wave (Bearish Possibility):

Bank Nifty Daily chart by Deb Trades

Wolfe wave is another possibility. As can be seen from the above hourly chart of Banknifty. Banknifty is currently in a raising wedge pattern (yallow and black lines). Raising wedge pattern is bearish. Hence if the rasing black line is violated Banknifty will start falling heavily upto 15437 or below. But that is not a perfect wolfe wave. In wolfe wave Banknifty should move upto point 5 violet the yellow line upwards and then starts falling. Now since we have not yet touched point 5 yet hence that's another possibility that we may reverse upwards once again without violating the raising black line and reach upto point 5, then start falling to 15437 or below.

Summary: 
All these above are possibilities and probabilities now. Hence just follow the Keep It Simple and Stupid (KISS) method. Above 16922 it's bullish. So manage your shorts with 16922 as SAR (stop and reverse) with 50 points filter.

Final words: 
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Bank Nifty for week starting 25/04/2016

Like Nifty, not much change in view for Bank Nifty as well compared to our last post. Last week Bank Nifty opened at 16329 made a low at 16012, high at 16770 and closed at 16703. A trading range of 758 points which is good for trading.This week we have Federal Reserve Monetary Policy meeting on 26-27 and like Dow Jones, our Indian market may also be affected because of the rate decision. Except this not many major events. But let's trade the chart, not the news and see what are Bullish / Bearish possibilities ahead.

Bullish Possibility: 

Bank Nifty has closed above the falling trend channel (the sky blue lines) which is positive. As discussed in previous post this will eventually bring 16922 which is the next target / resistance level. 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 Possibility:
 

16922 is a good resistance to watch for before we make any further up move. My bearish view in my last post till holds good.

Quote
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.
Unquote

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Bank Nifty for Week Starting 18/04/2016

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!!

Read More »