BankNifty weekly outlook 2 to 6 June 2014
BankNifty daily chart technical analysis
Banknifty spot on last trading session closed at 14793 with loss. On daily chart, banknifty price trend is up but momentum is weakening as profit booking hit the market as expected. Banknifty is still trading above its 1 month and 3 month averages with strong corrective patterns on indicators. For next week, banknifty will have support at 14,650 and then 14,000 while on upside expect strong resistance at 15,300 and then 15,930. 12,750 is major average level and if budget disappoints then this will be target zone for banknifty.
Traders here keep wait and watch strategy. If banknifty gives reversal positive closing above 14,650 then that will be buying opportunity but if breaks below it then go short for 500-600 points downside rally.
BankNifty weekly chart technical analysis
Banknifty spot this week closed with loss. This was first negative week for banknifty after last 3 weeks sharp run. This week banknifty hit high at 15,568 while low was at 14,709. Total 850 points range or 5.5% volatility swing for this index and closed with loss on profit booking ahead of major event. From medium to long-term view, bank nifty support zones are now at 13,900 and 11,600 while on upside 16,200 and 18,550 are strong resistances. Weekly chart indicators patterns are also bearish so expect correction to continue in upcoming weeks. Swing traders here hold shorts for target 13,900 with strict trailing stop loss.