Bank Nifty EOD Update Feb 8 - Post RBI No Rate Cut

Post RBI decision on rate cut, Bank Nifty corrected to 20070 and bounced back . It is not surprising that even after bad news of no rate cut, it bounced back from low and closed at 20245. But now it is at crucial juncture of 20400. So it is now case of a make or a break for Bank Nifty! Why? Let us understand from following chart:

Chart shows from Sep 07 top(20576), Index moved to 17600 between a major solar cycle (Sep 22 to Dec 22). The nos 204(00) and 176(00) are important levels as they are consecutive Gann Nos of 180 deg (176 & 204)

Post low of 17600 (on Dec 26, close to Dec 22 cycle start), Bank Nifty moved up so quickly that it reached back to 20400 even before start of minor cycle (Feb 4) and now facing resistance at 20400. So if it not able to cross 20400 convincingly and hold above it, Bank Nifty may slide to 19700/19000 and may even go back to 17600 very sharply.

So next 2-3 days would need caution if Bank Nifty struggles at 20400 level. If it breaks 20400 decisively next level could be 233(00) that next Gann No in 180 degree above 204.

Hourly chart shows Bank Nifty bounced back from lower line of red channel. I marked 22 bars of correction time and it took exact time to complete correction. Tomorrow bank Nifty may reach 20400/20500 level and may face resistance at 20576(High of Sep 07). If it decisively breaks it then 20700/20800 is possible.

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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