Hello Again,
Today's View : BANK NIFTY
Most of the Traders were Bearish on Nifty, Banknifty and Overall Markets due to #Brexit, #Rexit issues. Analysts and Experts on Blue Channels and Pink Papers never waste the chance of spreading fear among traders and Investors. This time same thing happened, Most of Retail Investors or Traders were on sidelines and Market again proved all so called analysts and experts are on wrong side. All the Global Markets are trading at Highest levels. At this levels, again the Experts advising to be "cautious" in Market.
Always Remember
If you are a trader, you are in Market to Take Risk. Without Risk there is no Reward. and Without Fluctuations, there are no possibilities of trades.
If you are a Investor, you don't need to be cautious about short term fluctuations of the Market, on long term Markets always give superior returns.
Coming to the Point, BankNifty is most traded Index in Indian Market after Nifty. If we see the Historical price movement on Weekly Chart, it looks superb, No Need to be an expert in analysis.
The chart is from the post correction period of 2008, indicating clear uptrend. No need to be a technical analyst or a Market Expert. It gives a guideline of Market behavior.
As a Analyst, I will complete the Next part of Analysis, The Next Chart is a little closer look at the recent zone of the weekly chart.
Most of the Traders were Bearish on Nifty, Banknifty and Overall Markets due to #Brexit, #Rexit issues. Analysts and Experts on Blue Channels and Pink Papers never waste the chance of spreading fear among traders and Investors. This time same thing happened, Most of Retail Investors or Traders were on sidelines and Market again proved all so called analysts and experts are on wrong side. All the Global Markets are trading at Highest levels. At this levels, again the Experts advising to be "cautious" in Market.
Always Remember
If you are a trader, you are in Market to Take Risk. Without Risk there is no Reward. and Without Fluctuations, there are no possibilities of trades.
If you are a Investor, you don't need to be cautious about short term fluctuations of the Market, on long term Markets always give superior returns.
Coming to the Point, BankNifty is most traded Index in Indian Market after Nifty. If we see the Historical price movement on Weekly Chart, it looks superb, No Need to be an expert in analysis.
The chart is from the post correction period of 2008, indicating clear uptrend. No need to be a technical analyst or a Market Expert. It gives a guideline of Market behavior.
As a Analyst, I will complete the Next part of Analysis, The Next Chart is a little closer look at the recent zone of the weekly chart.
here we see the Index completed a short term downtrend, it was a part of the Long term uptrend, in short trend within a trend to complete the movement from the top of the channel to the support of the channel, The downward trend completed and the trendline pierced upward to resume the uptrend.
The Red Circle shows the price moved above the mid channel line and also the horizontal resistance line to show the strength and entered the upper channel with further space for more upmove.
Moving further we will see a Daily chart
here we see clear picture for the short term move, The Price is currently moving in rising channel and now above the mid channel line with strong support, While entering the rising channel and completing the down move, chart created Inverted Head and Shoulder Pattern, where the Neckline of the pattern is resting around 17091 level. The Low of Head is placed around 13300, which gives a distance of 3700 points. The Index Crossed the Neckline and moved up, Reversed to test the neckline again and resumed the uptrend.
The Target of this pattern is 3700 points from neckline which comes around 20700-20800.
at present the Index is Trading at 18600 level, with a strong support around 18400 - 18080 and a resistance around 18880.
As per current scenario of Global Markets and sentiments, Markets are still in strong uptrend and the Constituents of the Index, all major Banks are still in good strength supported by the strong reversal in Banking stocks all over the World. Overall supporting the up move of the index and restricting the downside.
Recommendation :
For Traders :
I will recommend to BUY BANKNIFTY on All dips towards 18400 & 18080 (which is a rare possibility at current level) with a Stoploss around 17800 and take profit at 19200 - 19900 - 20400 - 20800.
Keep Trading in the range as the move will not be one sided move. There will be ups and downs, But the direction should be Buy on Dips instead of Sell on Rise.
If you want to carry the trade, Keep Trailing Stoploss, to protect profits.
For Investors :
Investors who want to enjoy the Rally May Buy BANKNIFTY ETF units..
Bankbees, KotakBkETF, SETFNIFBK, RelBank, EBank are available options.
Speculators :
Small Risk Takers may BUY BANKNIFTY 19000 AUG CALL around 200-240 levels. Current closing Price is 296. Lot size is 40, Approx Risk 8000+
Follow Strict Risk Management Before Entering the Trades and Consult your Investment Advisor for guidelines. "Do not jump in the trade" without considering the risk.
Enjoy Trading, Trade Safe, Trade Wisely !!
________________________________________________________________
Disclaimer :
The Analyst May or May not have trading positions or Investments in suggested Instrument, The Trade is Long Term and the Analyst may recommend the trade to his clients time to time for short term trading. short term reversal trades May be advised in this duration and it will be according to the charts.
The Analyst is a SEBI Certified Investment Advisor and Global Market Expert having Vast experience of Financial Markets in India and Across the Globe. Running Analysis Services and Advisory since Last 6 years for clients across the world in Stock Markets, Forex, and Commodities.
Contact Details ::
WhatsApp & Telegram +91 8275 298 208 / Email : 4x.magician@gmail.com
________________________________________________________________
The Red Circle shows the price moved above the mid channel line and also the horizontal resistance line to show the strength and entered the upper channel with further space for more upmove.
Moving further we will see a Daily chart
here we see clear picture for the short term move, The Price is currently moving in rising channel and now above the mid channel line with strong support, While entering the rising channel and completing the down move, chart created Inverted Head and Shoulder Pattern, where the Neckline of the pattern is resting around 17091 level. The Low of Head is placed around 13300, which gives a distance of 3700 points. The Index Crossed the Neckline and moved up, Reversed to test the neckline again and resumed the uptrend.
The Target of this pattern is 3700 points from neckline which comes around 20700-20800.
at present the Index is Trading at 18600 level, with a strong support around 18400 - 18080 and a resistance around 18880.
As per current scenario of Global Markets and sentiments, Markets are still in strong uptrend and the Constituents of the Index, all major Banks are still in good strength supported by the strong reversal in Banking stocks all over the World. Overall supporting the up move of the index and restricting the downside.
Recommendation :
For Traders :
I will recommend to BUY BANKNIFTY on All dips towards 18400 & 18080 (which is a rare possibility at current level) with a Stoploss around 17800 and take profit at 19200 - 19900 - 20400 - 20800.
Keep Trading in the range as the move will not be one sided move. There will be ups and downs, But the direction should be Buy on Dips instead of Sell on Rise.
If you want to carry the trade, Keep Trailing Stoploss, to protect profits.
For Investors :
Investors who want to enjoy the Rally May Buy BANKNIFTY ETF units..
Bankbees, KotakBkETF, SETFNIFBK, RelBank, EBank are available options.
Speculators :
Small Risk Takers may BUY BANKNIFTY 19000 AUG CALL around 200-240 levels. Current closing Price is 296. Lot size is 40, Approx Risk 8000+
Follow Strict Risk Management Before Entering the Trades and Consult your Investment Advisor for guidelines. "Do not jump in the trade" without considering the risk.
Enjoy Trading, Trade Safe, Trade Wisely !!
________________________________________________________________
Disclaimer :
The Analyst May or May not have trading positions or Investments in suggested Instrument, The Trade is Long Term and the Analyst may recommend the trade to his clients time to time for short term trading. short term reversal trades May be advised in this duration and it will be according to the charts.
The Analyst is a SEBI Certified Investment Advisor and Global Market Expert having Vast experience of Financial Markets in India and Across the Globe. Running Analysis Services and Advisory since Last 6 years for clients across the world in Stock Markets, Forex, and Commodities.
Contact Details ::
WhatsApp & Telegram +91 8275 298 208 / Email : 4x.magician@gmail.com
________________________________________________________________
