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Sunday, July 28, 2013

Analysis of BANK NIFTY

Previous week we saw decent fall in Bank Nifty and it has closed below all MAs. BN is looking very bearish. But is it all? Let’s see..

The broader picture...



After giving selling cross in stochastic, till date BN has broken all trendline support and trading below it. We have another three trading days to go, BN has to save 11150 level to get some breather. But till it is trading below 12050, it is short on rise. Only a close above 12050 may change the scenario for the time being.



The medium term...



Although weekly chart of BN is looking very bearish but hope starts to build in no-confidence zone. As the weekly chart suggests 10350 is decent support and weekly closing above 10810 is hood for some 500-600 (or more) points upmove. As of now weekly chart is oversold (although it can be in oversold zone for long only price may confirm upmove) and may look for some respite before fall again. 



The immediate term...



On 30 min chart, we can see positive divergence till closing and it may have some effects with some upmove. As per 30 min chart, 11200 level is decent resistance. 



Levels

5EMA: 10747   21DEMA: 11198  5DSMA: 10825 5WEMA: 11243

Wish you happy trading...

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