View on Nifty & Bank Nifty

In last to last week on 9^th July, Nifty has filled the gap of the election period and given bounce from 11450. In last week every news channel was talking about the Nifty rally, however on last trading day market has broken down all-important support and closed in red, why? The reason behind this is when small traders are following News channel, Technical charts and all other things at that same time big traders are ready to react exact opposite and on last Friday same thing happened in the market. If you are doing options data analysis then you can easily say that call writers have won the match at the end of the week. Let’s see technical analysis of Nifty and Bank Nifty.

Technical Overview of Nifty: As chart showing on 9^th July Nifty has filled the 90% gap and took support from Trend Line and has given bounce of 250 points. However, there was two strong resistance on the daily chart and Nifty resist from 2^nd resistance i.e. around 11650-11700. On closing of 18^th July, Evening Star has been created on the daily chart and given negative confirmation as per the technical analysis. Now Nifty has broken back to back support and closed around 11400.

 
As per my view, Nifty will test 11100 in the coming week, looking sell on every rise in Nifty but near resistance i.e. 11450-11500.

Technical Overview of Bank Nifty: After election gap up Bank Nifty has made a new top and then given correction till 30200. On 05^th July has made the second top and given confirmation of Double Top. In last week Index has taken the support of 30200 i.e. around 50 DMA, but as we told in our last article Index always fill their gaps and it’s done in Bank Nifty on Friday. There is immediate support of Trend Line and after gap filled bounce is expected. If the index will break down Trend Line then Bank Nifty will show 28500. Our view is the same on Bank Nifty that is sell on every rise.

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Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.