Banknifty future on last trading session closed at 24483 with gain. Banknifty is lagging against nifty and last session it touched major hurdle of 24495 and closed around it. Above 24495, banknifty will enter bullish trend for big upside targets in month of September.
On daily chart setup, banknifty future is now trading above all short term averages with bullish continuation pattern. Prices had taken support of 50 days average level of 24000 and now trading above all major short term averages. On downside, 24335 is 5 and 20 days average support and below it 24100 is 20 days average support level. Daily chart RSI is at 54 with buy signal given at 24200 level while MACD is at 13 with bottomed out patterns.
Banknifty future traders watch 24495 as make or break level and if banknifty future cross that level then expect upside targets of 25100 and 25870. If fails to cross 24495 then expect sell off and short term downtrend continuation towards 23750 and below.
Banknifty option traders keep buy on dips view in banknifty 24400 call options of this expiry or banknifty 25000 call options of next expiry with stop loss for big gains in next week. We already saw huge rally in banknifty 24400 call options from low of 282 rupee to almost high of 402 rupee.
Banknifty weekly chart shows positive closing for the week. This week banknifty future hit low around 24083 while high was 24528. Total 440 points weekly range and this was second positive weekly closing for this banking index future. Prices are back above 5 weeks average of 24340 and look like resumed long term uptrend. On downside 23450 is banknifty 20 weeks average support and below that 21740 is 50 weeks average level. Weekly chart RSI is at 69 and flattened out while MACD is at 949 and with bearish crossover.
Banknifty future from investment view hit 2017 target of 21400 and 24600 then we saw strong supply from market around 24600 level and banknifty corrected to low of 23882. Now this week strong positive closing suggesting banknifty might resume long term bull run and if crosses 24600 with strong price action and volume then will enter long term super bullish trend for 28500 and then 31800.
In last 7 months, only 2 months were negative while 5 months are with green closing and month of September kicked with positive start.