EquityPandit’s Outlook for Bank Nifty for week (July 27, 2015 – July 31, 2015):
Bank Nifty ended the week with the loss of more than 2% .
As we have been suggesting since last 2 weeks that the index has to move above the trend-line resistance positioned around the levels of 19300 but index does not move above that levels for the second time and the index sold off to the levels of 18600.
The index has formed a Bearish engulfing pattern on weekly charts which may suggest the end of the uptrend. The index has to sustain over 19200 levels to negate this pattern.
As we are approaching in the expiry week the index can be volatile in the range of around 18300 on downside to 19200 on upside.
Options data suggest the logical support for the index on downside can be in the zone of 18300 to 18500 as 18000 and 18500 put options have close to 8.00 lac and 5.00 lacs shares outstanding respectively.
Technically the support for the index lies in the zone of 18400 where 50 Daily EMA and 100 Daily SMA is lying.
Range for the week is seen from 18300 to 18500 on downside to 19200 to 19500 on upside.