Bank Nifty For Week Starting Feb 6, 2017

Last week Bank Nifty moved fast on Budget day and continued to move up slowly for next 2 days. Let us analyze what is in store for coming week/s for Bank Nifty.

Solar Cycles:

This week a new Minor Solar Cycle is going start (From Feb 4).

For Major Cycle starting Sep 22, 2016 to Dec 22, 2016 we saw down move of more than 2800 points while there was very volatile moves during start of minor cycle started on Nov 7.2016 due to events (Trump Victory & Demonetization). We also saw reversal in trend from cycle starting Dec 22, 2016(reversal happened on Dec 26). The change of cycle saw a sharp up move of 2600 points.

Now It will be interesting to see what happens when minor cycle starts this week. Whether market continues its upward trend or reversal takes place? We can also observe that very often Bank Nifty had sharp moves on the 1st trading day of start of New cycle. So Feb 6 can show us some big move! So in a nutshell this week will decide trend for next few weeks (up to Mar 22) and could be make or break for bank Nifty!

Daily chart shows further up move possibility.

Daily RSI is in overbought zone but haven't reached resistance level of 80 from where we saw reversal in Sep 7, 2016. MACD is showing up momentum. So it can reach top of Red channel zone that is 20900/21000 in coming days.

In hourly chart BB are contracting, so we may see sharp move on either side in 1-2 days. RSI is at 70 level. So either it will move up sharply or will reverse facing resistance at 70. MACD also showing loss of up momentum.

Inside Pitchfork:

IP is showing breakout. So upside momentum may continue!

Another IP with different coordinates shows Bank Nifty at upper 0.5 SD line. Breaking the same it can move to upper 1 SD line at 21000 level.

In a Nutshell ready for exciting week for trading!

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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