Bank NIFTY-Weekly Outlook-Venkat's Blog

The Bank Nifty moved in a range of 2077 points Viz. between 38613 & 40690 which made a bearish candle. In the process it attempted the lower end of the downward sloping channel trend support at 38600 levels and recovered marginally. The support at 39800 is crucial and a daily close below that would lead to more selling pressure. The Bank Nifty is continuing to move in the downward sloping channel with Bottom support at 38550 and top resistance at 41200 and the mean at 39750. The present mood of the market is to sell on every spike. Bank Nifty is known for its volatile moves and can alter the sentiments in a couple of sessions. Only a close below 39800 could lead to deeper correction. We can expect choppy moves on either side. A breach and close above 41200 would trigger stops and the Bank Nifty might see a spike towards 42500. Expected range for Bank Nifty is 38600-41200. Global scenario for Banking stocks continues to be highly negative. A daily close outside the broader range indicated above would require re-evaluation.

Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.