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