Hello Friends,
Same like always last week also the bank nifty trades went very nice and we moved from 37,500 levels and hit a high of 38,200 levels. Let’s analyze the last week move of bank nifty and then decide what will happen next week and what will be my trading plan over the next week.
This is bank nifty chart on one hour time frame.
Friends, bank nifty last week took support at 37,500 levels and there after went on to hit a high of 38,200 on Tuesday, 02 August which we said that this will be our first target for bank nifty.
Thereafter, due to profit booking of longs and resistance at 38,200 levels bank nifty retraces and hit the zone of support at 37,700 levels and formed a base at 37,700 levels on 03 august and thereafter bulls regained the control of the market and we went on to hit 38,200 levels for the second time on 04 august.
And on the same day we retraced to the levels of 37,500 levels and thereafter hit the low of 37,200 levels. Now, here if you notice carefully friend’s bank nifty saw a good buying pressure and then again we went on to hit 38,200 levels for the third time in a week. Now, after understanding the last week price action and the price patterns is very important.
If you see we are forming a kind of head and shoulders pattern on the one hour time frame. Now the zone of critical resistance has shifted to 38,200 levels. Where bank nifty has already faced resistance thrice.
Therefore, for my long trades next week, I will enter longs only when we clear 38,200 levels on the daily closing basis. Once this zone of resistance is cleared and we sustain above these levels we will hit 38,800 – 39,000 levels on weekly basis. For these long trades we will keep stop loss at 37,750 levels.
For bearish trade setup we will maintain a sell below 37,500 levels on daily closing basis. That will clearly show that the bulls have lost and the bears have taken over the trend. For bearish trades, my first target will be 37,100 – 37,000 levels. Once these levels are activated I will keep the stop loss at 37,800 levels.
So, for next week trade be very careful and we will keep on sharing our trades as the market moves. Also it’s a short week due to holiday on Tuesday, 09 august. So the amount of premium decay will be much more and I will suggest everyone to avoid holding options positions overnight.
Same like always last week also the bank nifty trades went very nice and we moved from 37,500 levels and hit a high of 38,200 levels. Let’s analyze the last week move of bank nifty and then decide what will happen next week and what will be my trading plan over the next week.
This is bank nifty chart on one hour time frame.
Friends, bank nifty last week took support at 37,500 levels and there after went on to hit a high of 38,200 on Tuesday, 02 August which we said that this will be our first target for bank nifty.
Thereafter, due to profit booking of longs and resistance at 38,200 levels bank nifty retraces and hit the zone of support at 37,700 levels and formed a base at 37,700 levels on 03 august and thereafter bulls regained the control of the market and we went on to hit 38,200 levels for the second time on 04 august.
And on the same day we retraced to the levels of 37,500 levels and thereafter hit the low of 37,200 levels. Now, here if you notice carefully friend’s bank nifty saw a good buying pressure and then again we went on to hit 38,200 levels for the third time in a week. Now, after understanding the last week price action and the price patterns is very important.
If you see we are forming a kind of head and shoulders pattern on the one hour time frame. Now the zone of critical resistance has shifted to 38,200 levels. Where bank nifty has already faced resistance thrice.
Therefore, for my long trades next week, I will enter longs only when we clear 38,200 levels on the daily closing basis. Once this zone of resistance is cleared and we sustain above these levels we will hit 38,800 – 39,000 levels on weekly basis. For these long trades we will keep stop loss at 37,750 levels.
For bearish trade setup we will maintain a sell below 37,500 levels on daily closing basis. That will clearly show that the bulls have lost and the bears have taken over the trend. For bearish trades, my first target will be 37,100 – 37,000 levels. Once these levels are activated I will keep the stop loss at 37,800 levels.
So, for next week trade be very careful and we will keep on sharing our trades as the market moves. Also it’s a short week due to holiday on Tuesday, 09 august. So the amount of premium decay will be much more and I will suggest everyone to avoid holding options positions overnight.