EquityPandit’s Outlook for Bank Nifty for the week (August 24, 2015 – August 28, 2015):
Bank Nifty ended the week on negative note losing more than 3.50%.
On 21/08/2015, the index broke below the levels of 18000 but manages to close above the levels of 18000.
As seen from the chart the index is holding the downward moving channel support around the levels of 17900. Below the levels of 17800 the index can drift to the levels of 17300.
Next week will be the expiry week and the index will be moving according to the options position.
17500 & 18000 Put options have close to 4.00 to 6.00 lacs shares outstanding. So we think the index will hold the levels of 17800 till expiry.
18500 & 19000 Call options have close to 5.00 to 10.00 lacs shares outstanding. So we think the index will face stiff resistance around the levels of 18300 to 18500.
Technically the index is trading below short term and long term moving averages.
Range for the week is seen from 17500 to 17800 on downside to 18300 to 18500 on upside.