Bank Nifty hold the support zone of 19732,EOD Analysis

By | November 13, 2016
  • As discussed in last analysis Now Bulls need to close above 20300 for a move above 20500/20907. Bears will get active below 20000 for a target of 19732.  Bulls need a weekly close above 20300 as shown in below gann angle chart for a move towards life high.  Bulls again failed to close above 20300 on weekly basis,but continue to hold our support at 19732. Bulls need to hold 19732-19650 range for another move towards 20000/20232.

support

 

  • Bank Nifty Nov Future Open Interest Volume is at 19.5 lakh with addition of 0.08 lakh, with increase in Cost of Carry suggesting long positions were added today. Bank nifty continued to trade above rollover price @19750 Low made today 19777.
  • 20500 CE is having highest OI @7.2 Lakh resistance at 20500. 19000-21000 CE saw addition of 5.9 lakh in OI so bears added aggressively in range of  20500/21000 CE.
  • 19000 PE is having highest OI @7.7 Lakh, strong support at 19000 followed by 18500, Bulls added 0.87 Lakh in OI in 19000-21000 PE .

Buy above 19800 Tgt 19900,20130 and 20250 (Bank Nifty Spot Levels)

Sell below 19700 Tgt 19600,19500 and 19312 (Bank Nifty Spot Levels)

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4 thoughts on “Bank Nifty hold the support zone of 19732,EOD Analysis

  1. RAgarwal

    @Ajay- The essential raw material for any bank is money. The amount of money they have received in two days only- Saturday and Sunday (~3 L Cr.) is significant. Withdrawal of the deposited money should take time and will not be immediate, leaving all banks with a good kitty which they can use for lending more (provided ppl avail loans, etc.), settling their own loans that are at higher interest rates and finding new instruments for disposing loans. RBI/Govt. will also have significant money (remember CRR Ratio) which they will use to settle fiscal deficit and fund infrastructure investments in the country. Given that value of any index is dependent of underlying which is further dependent on future cash flows, it makes a good case of BankNifty moving up!

  2. Ritesh Agarwal

    Hi Bramesh,
    Do you think that the rapid deposits in bank on Saturday and today will positively impact bank nifty on Tuesday?

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