Bank Nifty EOD Update Feb 6

Bank Nifty started new time cycle with Gap Up opening at 20307(100+ points) and moved further up to 20462. But corrected to low of 20298, but recovered to close at 20371. So Bank Nifty did not fill Gap up level and closed above Gann level of 20364.

Bank Nifty 15 min chart shows RSI level of 50 as support and 80 level as resistance. So we may see further upside move as RSI is bounced from 50 level. Also MACD is showing reducing downward momentum. RBI monetary policy meet is on Feb 8 and till then market may move up in this manner (Up move and then small correction and then again up move).

Bank Nifty closed just above above 20364, Gann level, and hence Gap up opening is likely tomorrow. Bank Nifty may face resistance at 20576, TOP of Sep 07, 2016. If it cross that, Bank Nifty may reach 21000 in this week.

Bank Nifty Invert Chart:

Our mind is more comfortable seeing down movement and hence Invert chart gives some better understanding. Bank Nifty is moving along Upper BB (here it is lower BB) and may continue to drift along it.

On Daily chart MACD is continue to show upward momentum. RSI is yet to reach reistance level of 80. So Bank Nifty may continue its upward move.

Inside Pitchfork:

IP showing break of upper 0.5 SD line and Bank Nifty may move towards upper 1 SD line level of 21000 in coming days.

We may see Bank Nifty moving up till FEB 9-10 before some major correction sets in. We have PSU banks results scheduled on Feb7 (PNB/IDBI) and Feb 10 (SBI). So Bank Nifty will react to the result outcomes.

Comments

Bank Nifty for Week Starting Jan 16, 2017

Last week Bank Nifty made big up move of 650 points. High made is 18966. It looks like it is ready for further up move. On hourly chart Middle BB line(RED color) is providing support and Index may again move up towards upper line of Blue Channel. The Best trading strategy is now to go Long when Index is bouncing from Middle BB line and Exit when it is near upper line of Blue Channel. Hourly RSI shows Resistance at 85 level and Support at 59 level. So Blue channel along with RSI levels are good indicators for trade. It is not good idea to go short as Up Momentum is strong. If Index breaks Middle BB line then only short positions should be taken. If Bank Nifty breaks 18850/18800 then we may see it reach quickly to 18650/18600. Also it may break RSI support level of 59 for major correction. We may see Index moving along Upper BB line (Blue color) on Daily chart. Index may face resistance at 19150/19200 level. If it crosses 19200 it can reach to 19500/197000. Daily RSI is

Bank Nifty EOD Feb 7 Update!

Bank Nifty is in consolidation/correction mode. Today it moved in a very narrow range and it seems that it is under time correction before a BIG move. It is awaiting RBI monetary policy decision due on Feb 8 and bank Nifty may make Big move on Feb 9 in either direction depending on market's reaction to RBI decision. Bank Nifty 15 min chart shows wave a and wave b completed and wave c is in progress. It may take triangle pattern of correction as uncertainty of event outcome is playing out. It may correct to 20250/20030 levels.

Hindalco - On the Verge of Break-Down?

Hindalco Daily chart is posted below: Daily chart shows prices are facing resistance at Gann level 183 and now prices are near lower band of Bollinger Bands(BB) that are expanding. Hence, a big fall is expected in next 2-3 trading sessions with target of next Gann level 157. Daily RSI is also broke 50 level coming from upside overbought 70 level that signals further fall in coming days.

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