BANK NIFTY: SERIOUS BREACH OF SUPPORTS

ON A DAILY CHART BANK NIFTY HAD A STRONG SUPPORT AROUND 11400 WHICH HAS NOW BEEN BROKEN AND IT HAS GIVEN A CLOSE BELOW THE GOLDEN RATIO i.e. 61.8% RETRACEMENT. ALTHOUGH BANK NIFTY SEEMS TO BE HIGHLY OVERSOLD ONE MUST AVOID BUYING AS THE MAJOR TREND SEEMS TO BE DOWN. A GAP AT 10660 IS STILL UNFILLED WHICH MIGHT ACT AS MAJOR SUPPORT FOR THE INDEX IN COMING DAYS AND THE SERIOUS BREACH OF THE SAID LEVEL MAY CREATE MORE PANIC IN BANKING STOCKS AND THE INDEX WE SENSE CAN TEST 9500 MARK. AT THIS STAGE THIS MIGHT SOUND UNREALSTIC TO MANY BUT WE SENSE THAT BANK NIFTY HAS BREACHED MAJOR SUPPORTS AT 11700- 11400 VERY CONVINCINGLY.

 

ON A WEEKLY CHART IT HAS FOUND SUPPORT AROUND 50 WEEKS EMA AND WEEKLY CLOSE BELOW 11180 MAY MAKE THINGS WORST. AGAIN WE REQUEST TO AVOID BUYING IN BANK NIFTY UNLESS AND UNTILL IT CLOSES ABOVE 11200 ON WEEKLY BASIS AND ON DAILY BASIS 2 OR MORE CLOSES ABOVE 11400 HAPPENS. WE ARE HIGHLY BEARISH ON THE INDEX PROVIDED IT TRADES BELOW 11200. 10660 IS THE LAST HOPE.

 

WOULD LIKE TO QUOTE ONE OF OUR FAVOURITE QUOTES FROM THE GURU DENNIS GARTMAN

"Markets can remain illogical longer than you or I can remain solvent,"


 

BELOW IS THE DAILY CHART.

 

 

WEEKLY CHART:

 

 

WEEKLY CHART WITH FIBONNACI TOOL

 

 

 

CNX PSU BANK 19313

THE INDEX TODAY WAS DOWN BY 2.7% AND CLOSED AT 3218. THE INDEX HAD A VERY STRONG SUPPORT AROUND 3371 AND DURING RECENT RALLY IT FAILED TO CROSS THAT LEVEL ON A CLOSING BASIS. THE INDEX TODAY CLOSED BELOW ITS RISING TREND LINE AND HELD CRUCIAL SUPPORT PLACED AROUND 3185. WE BELIEVE IF 3185 IS BROKEN ON A CLOSING BASIS PSU BANKS MAY WITNESS FURTHER SELL OFF AND CRASH UPTO 2950 LEVELS. CONVINCING CLOSE ABOVE 3371 IS REQUIRED FOR THE PSU BANKS TO GAIN FURTHER MOMENTUM. WE REQUEST TO AVOID ANY BUYING IN PSU BANKS IF INDEX TRADES BELOW 3185 AND UNTIL IT KISSES 2950.

 

 

 

 

 

CNX FMCG UPDATE 18313

IN OUR EARLIER POST WE HAD UPDATED ABOUT CNX FMCG AND WROTE THAT ABOVE 15115 IT LOOKS BULISH. TODAY THE INDEX CLOSED 15245 AND FORMED A STRONG BULLISH CANDLE. WE EXPECT THE FMCG COUNTERS TO MOVE HIGHER...... KEEP EYES ON ITC, MCDOWELL, DABUR AND LOVELY HUL......

 

 

 

CNX FMCG 13313

THE INDEX TODAY CLOSED ABOVE IT 50 DAYS EMA AND KISSED THE RESISTANCE AROUND 15115.... ONCE CROSSES 15115 GO FOR HUL AND ITC  

IF GIVES CLOSE ABOVE THE SAID LEVEL WE EXPECT RALLY UPTP 15350-15400.....

 

 

 

CNX AUTO:

JUST HAVE AN EYE ON 4660 LEVELS.

 

LAST CLOSE 4569 ......... SUPPORT NOW AT 4500

 

 

 

ONCE CROSSES 4660 THEN????

 

TWO OR MORE CLOSES ABOVE 4660+ ANY WEEKLY CLOSE ABOVE 4660 HAPPENS

THEN WATCH UNEXPECTED MOVES..... OUR TGT 5000+

 

 

 

 

 

 

 

MORE DETAILS ABOUT THE STOCKS AND PERFECT ENTRY TO SUBCRIBERS ONLY

 

 

UPDATE ON BANK NIFTY

IN OUR EARLIER POST WE HAD UPDATED THAT TECHNICAL BOUNCE BACK IN BANK NIFTY IS EXPECTED UPTO 11770 AND THE INDEX KISSED 11814 AND FINALLY MANAGED TO CLOSE AT 11792.... NOW 11645 LEVELS MAJOR SUPPORT ... 11990 LEVELS NOW GOING TO ACT AS RESISTANCE FOR THE INDEX.....


BANK NIFTY

THE BANK NIFTY IS STILL IN A UPTREND. A CRUCIAL SUPPORT EXISTS AROUND 11475 LEVELS. ON A DAILY CHART BANK NIFTY HAS FORMED A DOJI CANDLESTICK PATTERN. SO CONSIDERING THESE 2 FACTS i.e.  THE INDEX IS TRADING AROUND A VERY CRUCIAL SUPPORT AREA AND IT HAS FORMED A DOJI ON DAILY CHART A POSSIBLE TECHNICAL BOUNCE BACK UPT0 11700-11770 LEVELS CANT BE RULED OUT.