EquityPandit’s Outlook for BankNifty and its major components for week (June 22, 2015 – June 26, 2015):
For the week, Bank Nifty ended with the gain of around 2% highly underperforming the Nifty which gained close to 3%.
As we have suggested last week that the index has formed a doji on weekly chart in downtrend which may suggest exhaustion of selling pressure and the index bounced back from the levels of 17300.
The index is entering into strong resistance zone of 18000 where medium term and long term moving averages are lying.
200 Daily SMA and 50 Daily EMA are lying around the levels of 18000 which will provide stiff resistance to any upside momentum.
Call options in 18000 strike price has close to 6.00 lacs outstanding which will provide resistance to the index.
Broad range for the index in coming week is seen from 17500 on downside to 18200 on upside.
HDFC Bank closed the week on positive note gaining around 3%.
After 15 days of consolidation the stock broke out of the range on upside and close around the levels of 1030.
The stock has formed a Morning star pattern on weekly charts. The pattern is a bullish reversal signal after a downtrend.
On 18/06/2015, the stock broke out of the range with heavy volumes.
As seen from the chart the stock is approaching towards the trend-line resistance zone of 1040. A break of this level will take the index to the levels of 1055 to 1060.
Short term moving averages are lying in the range of 1010 to 1020 which will provide support to any correction.
Broad range for the stock in the coming week can be 1000 – 1010 on lower side to 1050 – 1060 on upper side.
ICICI Bank closed the week on positive note gaining around 3%.
For the consecutive second week in the row the stock gained around 3% and the stock manages to close above the levels of medium term trend-line resistance.
The stock is moving towards the resistance zone of 310 to 320 where short and long term moving averages and trend-line are lying.
50 Daily EMA is lying in the range of 307 and a break above this levels can take the stock to the levels of 315 to 320 where 100 and 200 Daily SMA is lying.
310 and 320 strike price call options have the highest open interest of close to 30.00 shares which will provide some resistance to the stock.
Support for the stock lies in the range of 290 to 300.
Broad range for the stock in the coming week can be 290 – 300 on lower side to 310 – 320 on upper side.
Axis Bank closed the week on flat note.
As we have suggested last week that the stock has formed a Inverted Hammer pattern on weekly charts suggesting the exhaustion of selling pressure in the stock and this week the stock has formed a pin bar candle on weekly charts.
The stock is forming bullish patterns on the weekly charts, but the stock is facing significant resistance in the zone of 555 to 560 levels.
The stock has successfully hold the levels of 540 on couple of occasion and has formed a double bottom pattern on daily charts.
The stock has to move above the resistance zone of 555 to 560 levels for any uptrend. Above the levels of 560 we may see stock moving to the levels of 590.
Support for the stock is seen in the range of 540.
Broad range for the stock in the coming week can be 530 – 540 on lower side to 560 – 570 on upper side.
State Bank Of India
SBIN closed the week on positive note gaining around 2%.
The stock is seen moving into the strong resistance zone of 265 to 270 levels.
The stock has formed a double top formation around the levels of 263 on daily charts.
For the coming week the stock has to move above the levels of 263 for any uptrend to sustain. 200 Daily SMA lies in the range of 265 which will provide stiff resistance to the stock.
Call options in 260, 270 and 280 strike prices have on an average 40.00 shares outstanding which will check the stock in any up-move.
The stock has taken multiple support around the levels of 250 where trend-line support has emerged for the stock.
Broad range for the stock in the coming week can be 245 – 250 on lower side to 270 – 280 on upper side.