BANK NIFTY WEEKLY STUDY
Last week we mention that if bank nifty able to move above 10825 then we can see 11000-11250 level, but it outperform last week and able to give movement till 12000 level, but remember one thing we able to mention you the breakout level of bank nifty, which was 10825 and 11000.
Now one thing to notice is nifty given a life time high on chart and bank nifty is still 1300-1400 points down from its life time high level, so this can indicate the divergence between two indices.
Currently on chart bank nifty looking much stronger now, as it able to move and close above resistance level, but we still need confirmation of this strongness and that we can get if it give close above 12000 level.
Rsi move to overbought zone now, and with present level its giving a “NEGATIVE CONVERGENCE” signal at upper levels.
It has also made a “SYMMETRIC TRIANGLE” on chart and last session it able to move above upper level of this triangle. Triangle is having a width of 4000 points on chart so if close above 1200-12300 range then only upside we can expect a big move till 14000-16000 in coming 2-3 months’ time.
So at present bank nifty having a strong resistance at 12000 and 12250-300 range, if it able to move above that then only we can see 12800-13300-13800 levels in coming time, but any negative closing here can give downfall till support level of 11300-11600 range.
Last week calls performance.
MOTHERSUMI 235 TO 250 ALMOST.
GULFOIL 100 TO 104
JUBLIENTLIFE 126 TO 147.50
WABAG 660 TO 710
TATA SPONGE 445 TO 524
KOLTE PATIL 82 TO 97
BALPHARMA 36 TO 42
Calls for current week
Buy DBREALITY above 58 close sl 52 target 70-77
Buy BALKRISHNAIND above 420 close and hold with 360 sl for target of rs. 535-580-650 for 2-3 months
Buy LICHSFIN above 225 close sl 214 target 240-255
Buy TATA MOTOR above 421 close sl 395 target 470-525 (1-3 months if close above the level)
Buy M&M above 992 close sl 960 target 1035-1070-1125