Banknifty future this week closed at 24845 with gain. This was first major gaining week for this banking index after last 4 weeks consolidation phase. This week banknifty future hit low of 24461 while high was 24964. Total 503 points weekly range and strong positive closing for the week.
Banknifty weekly chart Prices are back above 5 weeks average of 24516 and look like resumed long term uptrend. On downside 23670 is banknifty 20 weeks average support and below that 21960 is 50 weeks average level. Weekly chart RSI is at 71 and with bullish divergence in overbought condition while MACD is at 904 and with bearish crossover suggesting early corrective signals.
Banknifty future traders watch 25100 as make breakout level as well as supply zone and if banknifty future cross that level then expect upside targets 25870. If fails to cross 25100 then expect sell off on profit booking and short term correction towards 24500 support. Daily closing below 24500 means short term downtrend for bearish targets 23725.
Banknifty option traders below 25100 keep buy on dips view in banknifty 25100 put options of this expiry or banknifty 24500 put options of next expiry with strict stop loss for big gains in next week. We already saw huge rally in banknifty 24500 call options from low of 251 rupee to almost high of 538 rupee.
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 in last 4 weeks strong recovery rally taken banknifty above 24600 and prices are heading towards long term super bullish trend for 28500 and then 31800. On upside 25260 was august series top and major hurdle and remain major supply zone for long term investors. In last 7 months, only 2 months were negative while 5 months are with green closing and month of September kicked with positive start and this month’s positive candle showing 767 points range.