hello everyone
First, let’s recap the last week action of bank nifty quickly. This is bank nifty chart on the 15 minutes time frame. Bank nifty on 10 October gave a gap down opening and took support of 38,600 levels. Thereafter the bulls took control of the session and we hit an intraday high of 39,500 levels also. Now, 39,500 was also a zone of strong resistance . So we retraced the next day and hit an intraday low of 38,900 levels and then again we recovered the move in the next candle. On the next trading session on 11 October we remained range bound and between 39,200 levels and 38,900 levels. There after we broke this range and gave a closing below the critical area of support at 38,900 levels.
Next day the bulls did a comeback and after opening low for the day we gained momentum and hit a high of 39,300 levels on the charts. On 13 October bank nifty opened with a Gap Down
The same day bank nifty hit an intraday low of 38,500 levels on the charts and then recovered before close of the session. On the next day again bank nifty gave a good gap up of 600 points after Fed gave a statement that – “The Federal Reserve should more slowly and steadily raise interest rates to allow time for its policy actions to seep through the economy and minimize market volatility”. This was a positive trigger for the market and thereafter we stayed range bound for whole of the day.
On this weekend HDFC BANK has also declared its results and the results had been very good. HDFC Bank Ltd on Saturday reported a 20 per cent on year growth in net profit for the September quarter to 10,606 crores. Net interest income grew by nearly 19 per cent. So in my analysis I am expecting the market to factor this results also.
So for 17 October I expect bank nifty to open gap down with at 39,200 levels and thereafter taking support at 39,200 levels I expect bank nifty to be bullish and hit an intraday high of 39,450 levels form the point of opening. Still as per my analysis 39,750 levels are very strong zone of resistance and from where bank nifty has got rejected multiple times. So, on the bullish side I will keep my target of 39,700 levels if 39,450 levels break on intraday basis. For my bullish trade setup I will keep my stop loss below 39,000 levels.
Now as far as the global scenarios are concerned and the considering the negative sentiment I will be prepared for a bearish trade setup also. For bearish trades I will go heavily bearish of bank nifty breaks below 39,200 levels. My target of bearish trade setup will be 38,900 and if we break 38,900 levels on daily closing basis then I will trade aggressively for a target of 38,500 levels on the charts in the next few days. The stop loss for my bearish trades will be above 39,400 levels initially and then I will keep on trailing my stop loss as per the market move and conditions. The bearish trade setup is giving me a better risk reward ratio
thanks
First, let’s recap the last week action of bank nifty quickly. This is bank nifty chart on the 15 minutes time frame. Bank nifty on 10 October gave a gap down opening and took support of 38,600 levels. Thereafter the bulls took control of the session and we hit an intraday high of 39,500 levels also. Now, 39,500 was also a zone of strong resistance . So we retraced the next day and hit an intraday low of 38,900 levels and then again we recovered the move in the next candle. On the next trading session on 11 October we remained range bound and between 39,200 levels and 38,900 levels. There after we broke this range and gave a closing below the critical area of support at 38,900 levels.
Next day the bulls did a comeback and after opening low for the day we gained momentum and hit a high of 39,300 levels on the charts. On 13 October bank nifty opened with a Gap Down
The same day bank nifty hit an intraday low of 38,500 levels on the charts and then recovered before close of the session. On the next day again bank nifty gave a good gap up of 600 points after Fed gave a statement that – “The Federal Reserve should more slowly and steadily raise interest rates to allow time for its policy actions to seep through the economy and minimize market volatility”. This was a positive trigger for the market and thereafter we stayed range bound for whole of the day.
On this weekend HDFC BANK has also declared its results and the results had been very good. HDFC Bank Ltd on Saturday reported a 20 per cent on year growth in net profit for the September quarter to 10,606 crores. Net interest income grew by nearly 19 per cent. So in my analysis I am expecting the market to factor this results also.
So for 17 October I expect bank nifty to open gap down with at 39,200 levels and thereafter taking support at 39,200 levels I expect bank nifty to be bullish and hit an intraday high of 39,450 levels form the point of opening. Still as per my analysis 39,750 levels are very strong zone of resistance and from where bank nifty has got rejected multiple times. So, on the bullish side I will keep my target of 39,700 levels if 39,450 levels break on intraday basis. For my bullish trade setup I will keep my stop loss below 39,000 levels.
Now as far as the global scenarios are concerned and the considering the negative sentiment I will be prepared for a bearish trade setup also. For bearish trades I will go heavily bearish of bank nifty breaks below 39,200 levels. My target of bearish trade setup will be 38,900 and if we break 38,900 levels on daily closing basis then I will trade aggressively for a target of 38,500 levels on the charts in the next few days. The stop loss for my bearish trades will be above 39,400 levels initially and then I will keep on trailing my stop loss as per the market move and conditions. The bearish trade setup is giving me a better risk reward ratio
thanks