EquityPandit’s Outlook for Nifty Bank for the week (October 10, 2016 – October 14, 2016) :
Nifty Bank ended the week on positive note gaining around 0.60%.
As we have mentioned last week that resistance for the index lies in the zone of 19500 to 19700 from where the index has broken down. If the index manages to close above these levels then the index can move to the levels of 20200 to 20400. During the week the index manages to hit a high of 19816 and close the week around the levels of 19400.
Support for the index lies in the zone of 19000 to 19100 from where the index has broken out of the 4 weeks of consolidation. The trend-line joining the lows of March, April, May & June also coincides with the support zone of 19000. If the index breaks below these levels and closes below these levels then the index will break the up-trend started from March – 2016. If the index closes below these levels for couple of days then the index can drift to the levels of 17800 to 18000 where long term moving averages are lying.
Resistance for the index lies in the zone of 19700 to 19800 from where the index has broken down. If the index manages to close above these levels then the index can move to the levels of 20200 to 20400 where the index has made a top in the month of September – 2016.
Range for the week is seen from 18800 to 18900 on downside to 19800 to 19900 on upside.