EquityPandit’s Outlook for Bank Nifty for week (August 03, 2015 – August 07, 2015):
Bank Nifty ended the week on absolutely flat note.
As we have suggested last week that the index has formed a Bearish engulfing pattern on weekly charts and index corrected to the levels of 18187 before recovering to end the week on high around the levels of 18700.
This week the index has formed a Hammer pattern in downtrend indicating the trend reversal.
As seen from the charts above if the index manages to close above the levels of 18850 the index can move to the levels of 19200 where upper end of downward sloping channel is positioned.
On 04/08/2015, RBI is announcing the quarterly policy which will decide the direction of the markets going forward.
Technically the support for the index lies in the zone of 18400 to 18600 where short term & long term moving averages are positioned.
Range for the week is seen from 18300 to 18500 on downside to 19200 to 19500 on upside.