Bank Nifty Levels for next week

2 Okt 2022

This is bank nifty chart on a 15 Minutes time frame. the bank nifty levels with great clarity and also told that last week is likely to be bearish. On 26 September bank nifty opened at 39,100 levels and made a high of 39,300. Now as per the last video update I told you all clearly that 39,300 was a strong support for bank nifty and once this breaks it will act as very strong zone of resistance as per rule of polarity of technical analysis.
Now friends, we broke this zone of 39,300 by a gap down open on 26 September and hit an intraday low of 38,500 levels. Thereafter, we consolidated between these zones of support of 38,500 to 39,000. Once bank nifty broke down from this zone of consolidation on 27 September, market fell with a good downward momentum.

We again opened gap down and formed an inverted U pattern, losing all the gains under pressure of heavy selling in the markets due to global weakness and hit an intraday low of 37,600 on the charts. Now again on 29 September bank nifty opened with a Gap up and thereafter the bears took control of the market and we again retraced to the levels of 37,600 / 37,700 on intraday time frame.

On Friday, 30 September, friends we had a RBI event lined up. RBI governor gave a positive outlook about the Inflation and RBI Governor said that we are expecting inflation to come down close to the target of 4% over a two-year period. This was a great catalyst for the bank nifty to bounce from a zone of support at 37,600 levels and then the bulls made a recovery of about 1000 points in intraday to hit the high of 38,900 levels before markets closed for the week.

Now, let see what levels we decide for trading next week. Tomorrow that is 03 October bank nifty is expected to open with a gap up of above 39,100 levels. There after bank nifty will retrace 39,000 levels. Now, this is the zone where we have to be very careful and decide our trades very carefully. Friends, if tomorrow 39,000 levels hold for first 15 minutes of the market opening I will enter intraday longs after this retracement towards 39,000 levels with stop loss at 38,700 levels. My target will be 39,800 levels in bank nifty on positional basis.
Now as the global trend is weak so I will keep my trades ready for a bearish move also. I will go short again in the bank nifty below 38,700 levels for the target of 37,600 levels on positional basis.
The stop loss will be at 39,000 levels for my short trade entry. This is a Good Risk reward ratio trade setup as compared to bullish trade setup. I still maintain a BEARISH bias FOR THE INDIAN MARKETS IN SHORT TERM SCENARIO, as the good news had been factored in the markets. Most critical levels for bank nifty for any bull run will be to hold above 39,000 levels on Monday.