Bank Nifty Weekly Analysis before RBI Policy

RBI Governor shocked the market participants on 24 July evening with increase in Interest rate to stabilize the rupee, Weekly Trend Deciding level of 10946 achieved the first target on upside  and than collapsed to achieved all weekly target on downside. Cool 600 Points pocked by positional traders in matter of week :). Lets see How Bank Nifty Technical are faring out before crucial RBI Policy.

Expectations from RBI in the Policy Review on July 30, 2013
RBI will be maintaining “Status Quo” in the policy
RBI will be watching the rupee movement closely and stability around 58 to 58.50 will keep the RBI away from taking further short term measures and continue with the recent measures for the next 2-3 months. If rupee is not getting stable around this level the RBI can raise CRR by 50bps. However, the measures taken recently are effective enough to check the volatility in the rupee and policy will be turning up to a “Non Event”

Bank Nifty Hourly

Bank Nifty on hourly chart  is near the lower end of channel,Holding 10336 bounceback can be expected till 10700 odd levels,

Bank Nifty Daily

Bank Nifty is trading at 10 month low and is taking support at gap area of 10352 as shown in below chart.Technical chart have been totally decimated and all relief rallies are getting sold into.Weekly closing below 10000 is again a sign the downtrend is still in place.Any close above  10700 will push bank nifty further to 11200-11400 range. Expect Volatile moves in next 2 days.

Bank Nifty Fibo Fans

Fibo Fans has been applied on Bank Nifty weekly charts Bank Nifty broke  2X8 line of Fibo fans,If unable to close above 10700 in coming week Bank Nifty can go as low of 9960 as per Fibo Fans.

 Bank Nifty Fibo Retracement

As per Fibo theory 10577 is 80% retracement of 13420-9818. Bank Nifty closed below it on Weekly basis. If coming week also it closes below 10500 we are going all way to 9500 in short term.

Bank Nifty Weekly

Bank Nifty on WoW basis was down by 500 points and closed at 10465, Bank Nifty is entering the demand zone of 10200-10000 odd levels. Trades carrying short can book in this range and aggressive traders can go long with a strict stoploss of 9900

Bank Nifty Monthly

Monthly charts have closed below the medium term trendline on Monthly basis bearish signal for Bulls.

 Bank Nifty Trading Levels

Bank Nifty Trend Deciding Level:10336

Bank Nifty Resistance:10569,10713 and 10946

Bank Nifty Support:10217,10117,9959

Levels mentioned are Bank Nifty Spot

Let me go by Disclaimer these are my personal views and trade taken on these observation should be traded with strict Sl

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