Banknifty index this week closed flat positive. This was third recovery week for banknifty and in these 3 weeks period we seen almost 2000 points rally from bottom. This week banknifty hit low around 16750 while high was around 17650.total almost 900 points weekly range with high volatile moves for traders.
On weekly chart, banknifty index price trend is down but momentum is bullish. On upside 17800 is 20 weeks ema level and upcoming resistance. On downside 16500 and 15900 lows will act as strong supports as well as buying opportunities for long term investors.
For next week, future traders watch 16850 support level if banknifty slips below it then expect 16100-16300 zone as target and re-entry points for swing traders. On upside 17600 to 17900 is major supply zone with multiple resistance points.
Option traders can use Oct expiry 17000 call options for buying and accumulation on correction. Keep tight stop loss as per risk profile in every trade.