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.

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