WEEKLY RESISTANCE FOR BANK
NIFTY :27350,27450,27600
PIVOT POINT:
27000
WEEKLY SUPPORT FOR BANK NIFTY:
26900,26800,26600
WEEKLY
CHART FOR BANK NIFTY
The Nifty Bank Index started the week on negative
note on Monday and remained under pressure throughout the session to end with a
loss of a percent. On Tuesday post opening on a flat note, the Nifty Bank Index
traded within a very narrow range for the most part of session however in the
second half it slipped below its last few sessions support zone at 27136 and
witnessed a sharp selloff to end the day with a loss of 1.45% tad above 26800
levels. On Wednesday post opening marginally higher, the Nifty Bank index once
again continued the negative momentum and corrected during the first half of
the session. The momentum readings on the hourly chart were in oversold
territory as the index approached the support around 26550. This led to a
pullback move in the latter half of the session and the index recovered all the
losses to end the day on a flat note. Thursday market was closed on accounts of
ganesh chaturthi. On Friday bank nifty was trading in narrow range with
positive momentum & closed the week at 27211.
On the daily chart Friday’s price action
has led to formation of a 'Hammer' pattern at the 38.2% retracement support of
the up move from March low of 23605 to the recent high of 28389. Formation of
such pattern at important support usually leads to a reversal and hence, there
is a probability of a pullback move in near term if the index crosses the Friday’s
high of 27290. On the flip side, the low of 27100 would now be seen as a short term
support.. As far as levels are concerned, immediate support is placed around 27000
- 26800 whereas resistance is placed around 27450-27800. However, unless we see
broad market participation, traders should trade with a proper exit strategy
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