Bank Nifty Trading Strategy

By | December 30, 2012 7:12 pm

December Expiry came and  Bank Nifty still remained in trading range of 12600-12200. As discussed last week bank nifty was unable to close above the trendline resistance of 12540. Technically till 12540 is not crossed pullback till 12200 is very much on cards. This is what we discussed last week and Bank Nifty made high of 12523 and low of 12265 so again we were able to catch the top and bottom of Bank Nifty 🙂

Bank Nifty Hourly

Bank Nifty Hourly

Bank Nifty hourly charts have pull backed from 12523 as discussed last week resistance at 12550. Bank Nifty has been trading in small range of 12265-12523.Breakout above 12600 and breakdown below 12200. Till this range is not broken better remain out of trade or Buy Support and Sell resistance.

Bank Nifty Daily Chart

Bank Nifty

Bank Nifty crossed its long term trendline resistance of 12200 and closed above it on weekly basis, Support is rising fast with trendline and has come to 12290. Resistance comes at 12580 odd levels.

 

 

 

Bank Nifty Fibo Fan Chart

 

Bank FF

 

As per Fibonacci Fan theory 12400 should be strong support any break below it can see a quick correction in range of 12300-12100. Closing and sustaining above 12580 can make Bank Nifty move 12800-13000 odd levels.

 

 

Bank Nifty Weekly Chart

 

Bank Nifty Weekly

Weekly charts are quiet interesting Bank Nifty hitting the weekly trendline resistance of  12540.Multiple tops are formed in range of 12540-12570 which will now be a strong resistance.From past 3 weeks Bank Nifty has remained in the range of 12200-12571 making a range contraction and eventual range expansion will come which will lead to breakout above 12600 or breakdown below 12200.

Bank Nifty Monthly Chart

 

Bank Nifty Monthly

Monthly charts are showing huge negative divergence with trendline resistance at 12540 and it showed effect when bank nifty pullback last week till 12200. Breakout above 12600 can see Bank Nifty upto 12800-13000.

 

Bank Nifty trading levels for Week

Trend Deciding Level:12489

Resistance:12571,12669,12879 and 13000

Support: 12300,12197,12020

 

All levels mentioned are Bank Nifty Spot

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