banknifty monthly technical analysis and levels for Jan 2015
Banknifty spot index today closed at 18430 with loss of 3%+ or 586 points. On daily chart, banknifty spot is trending towards its 3-month average and closed below its weekly and monthly average. On downside 17,700 is strong support of banknifty 3-month average. On weekly chart, banknifty spot first support is at 17,100.
For month of January 2015, banknifty outlook will remain bullish above 18,350. Above this level on closing basis keep buy and accumulate view on banknifty for upside targets 19,200 and then 19,800. Nevertheless, as short term and medium term trend suggesting correction. We expect breakdown below this level for target 17800 and then 17,000. These levels are also strong supports on downside.
Risky traders can use bounce back for going shorts on banknifty futures with strict stop loss above 19,200 spot. For risky option traders 19,000 put options is best bet to buy and accumulate.
From long-term view, banknifty spot index major support is at 15,400 and above it, investors can use major correction to buy and accumulate in blue-chip bank stocks.