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 Nifty for week starting 09/05/2016

Bullish Possibility:
As usual we will start with what we discussed last week.

Quote:
As long as we are above this long term falling trend channel we are safe and above 7972 we could target 8650 in medium term as mentioned in my earlier post.
Unquote: 

Nifty Spot Daily Chart

So let analyze where we are now. As can be seen from the above Nifty Spot Daily chart we are no longer trading above the blue falling trend channel hence bigger bullish move is not possible until unless we are trading within this channel. The upper trendline resistance for this channel comes at around 7865. But this falls withing the Nifty Consolidation zone as marked in chart using a grey rectangle. So until unless nifty moves past 7972 we are not in a bull market but in consolidation zone which is 7575-7972 about 400 points as discussed in my earlier post.

Another small bullish possibility arises if we break above the red resistance line in next week. Let's zoom onto the chart and consider Nifty Hourly chart below.

Nifty Spot Hourly Chart

Risk takers can take a long trade if Nifty move past the red resistance line next week. Currently the resistance is at 7713 but would suggest to go above the break of the previous pivot at 7773. If long taken the position should be maintained with 20 points SAR.

Bearish Possibility: 
 

Nifty Spot Weekly Chart

As can be seen from the above Nifty Weekly Chart the last week candle has fallen out side of the ascending trend channel which is bearish hence can potentially target the base of the breakout bar which is at 7521.

Summary:
1) Below 7773 Nifty is bearish.
2) Above 7773 Bullish attempt can be made but with cautious as 7972 will be the target or next resistance level.
3) Hence if short manage your shorts with 7773 as SAR (stop and reverse) with 20 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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