Banknifty technical analysis for 19 to 23 May 2014
Banknifty daily chart technical analysis
Banknifty spot on last trading session closed at 14853 with gain. On daily chart banknifty price trend and momentum both are strong bullish. Banknifty is trading way above short-term averages with overbought bullish indicator patterns. On upside 15,200 and 15,550 are strong resistances for next week while on downside 14,600 and 13,990 are strong support zones. 12,200 is major short-term average and above it expect short-term bullish view remains to be intact. Daily chart indicators are bullish but overbought so keep strict stop losses in place.
Traders above 14,500 use correction to buy and accumulate and expect targets 15,200 and then 15,550. Small traders use options to play this market. Next month 15,500-call option will be best bet.
Banknifty weekly chart technical analysis
Banknifty spot this week closed with huge gains on sharp short covering from trapped traders and fresh investment buying. Banknifty weekly chart price trend and momentum both are bullish. 11,350 is now major long-term average support and above it expect bullish view for banknifty for very long term. Now on upside resistances are at 15,800 and then 18,200 while on downside 13,600 and 11,350 are strong support zones. Weekly chart indicators are bullish but overbought so expect correction and consolidation ahead.
For investors 13,600 is trailing stop loss on weekly basis and expect target 15,800 in next 3 to 6 month period.