Banknifty weekly technical tips for 7 to 11 sep 2015
Banknifty this week closed with huge loss. High volatility and sharp downside move reflect panic in market as well as shallow depth of market. This week banknifty spot hit high around 17353 while low was at 15933. 1400 points or almost 8% downside move from tops shows profit booking pressure by strong hands before major economic decision. On weekly chart banknifty is in absolute downtrend and trading in oversold area.
On downside 15200 is last support and if banknifty slips below it expect another major panic and wide selloff. On upside 16200 and 16600 are strong resistances for next week. If sustain above 16200 expect sharp upside move stronger than selloff for target 17650.
On monthly chart, 14900 and 11500 are 3 and 5 years average levels. RSI is at 50 so breakdown from here set medium to long term targets around 14900 and then 11500.
For 2-3 years view investors every panic downside is buying opportunity in blue-chip banks.