Friday, July 26, 2013

BANKNIFTY nearing support levels...Time for a bounce???


BANKNIFTY Weekly nearing crucial support levels.

BN at  Monthly Ichimoku cloud.

BN at 50% Fibo level.

  • Weekly MACD yet to generate a buy signal. Monthly MACD ready to generate a bearish crossover signal. Weekly and Monthly closing levels are crucial.
  • BANKNIFTY may bounce for 1-2 weeks if the support levels are held. For levels check the inline comments on the 3 charts. 
  • Next resistance at 50Wk SMA.
  • Eventually, in the next 1-6 months, I expect BN to breakdown  below its major trendline. It may happen this month too (after 1-2 weks)  if Nifty is to break towards 5600. 
  • Currently, chances of a pullback rally in BN.




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