Bank NIFTY after RBI policy action stumbled towards 11400 odd levels and closed around 11508. Our view on to sell BANK Nifty around 12000 - 12150 with targets of 11500 achieved. The breakdown below can create blood bath in the index for much lower levels as suggested in our previous updates on the same.
Bank NIFTY daily chart
Although RBI reduced repo rates by 25bps, the Banking index stumbled down with a free fall after policy. So one needs to trade objectively rather than subjectively with appropriate price action, technicals and sentiments according to us.
Raju V Angadi
Equity Research Analyst
Fortuna Financial Boutique (FFB)
Bangalore, India.
To know more about probable counts contact us back of http://fortunfin.com/contact-us or e-mail us on research@fortunfin.com.
Disclaimer: This is just an view based on the research of individual. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.
Bank NIFTY closed around 11823 today. We suggested 12150 as the top for the rally from 11487. It reached 12165 making an intraday high of 1241.30 on Monday (11/03/2013). So again the downtrend has started in BANK Nifty Index after a short covering rally wait and watch for much lower levels till Friday (15/10/2013).
BANK Nifty Daily chart (Update)
So cautious traders can book the profits by this weekend as the RBI policy meet is on 19th March 2013 on coming Tuesday. Later on after policy action again can re-initiate positions. Based on the CPI Index data the chances of repo rate cut by RBI governor are looking bleak. Even though the improvement in IIP data figures released on yesterday which was 2.4 v/s -0.4. The key events to watch out for RBI action would be inflation data of FEB - MARCH 2013 to be released on Thursday (14/03/2013).
Technical outlook for Bank NIFTY suggesting much lower levels If broken below 11500 levels. Our advise would be trade safely with trailing stop loss those who have shorted at 12200 levels and enjoy profits.
Raju V Angadi
Equity Research Analyst
Fortuna Financial Boutique (FFB)
Bangalore, India.
To know more about probable counts contact us back of http://fortunfin.com/contact-us or e-mail us on research@fortunfin.com.
Disclaimer: This is just an view based on the research of individual. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.
Bank NIFTY has fallen from top of 12722 to 11487 around 10% correction from high on closing basis and is bouncing back towards 12000 odd levels.
Bank NIFTY Daily chart with Fibonacci retracements
The daily chart has taken the support of 11500 levels where it consolidated for 2 months from 01/10/2012 - 01/12/2012. In the short term 12000 - 12150 can act as a resistance levels which is 23.6% retracement is well.
Bank NIFTY weekly chart
Again weekly charts of Bank NIFTY also suggested the same 11500 as support levels which it bounced from to the current levels. The bounce can be short lived as it can be a short covering rally, If 12000 - 12150 finds a stiff resistance zone and reversal takes place the targets for the index on lower side can be much lower as much as 10 _ _ _ once broken below 11500.
So it is advisable to go short on every rise with a strict stop loss of 12220 for targets of 11500 odd levels If breaks below much lower targets can be seen or else for long traders better to avoid longs at present and watch for a breakout above 12200 for confirmation.
Raju V Angadi
Equity Research Analyst
To know more about probable counts contact us back on rvangadi@googlemail.com
Disclaimer: This is just an view based on the research of individual. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.
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