Weekly Analysis - Date : 20 - 26 Dec 2015
TrendMaster_ Nifty & Bank Nifty Weekly review.
Nifty on
pullback mode as it has bounced from the demand zone of 7540 which was the
previous swing low. Nifty failed to breach the previous swing low of 7539,
forming a higher low.
Analysis – Nifty in
contraction mode ahead as the bounce to the zones of 8090 is due on weekly
charts.
Longs in small quantity can be
initiated with stop loss of 7540. Nifty will retrace to the upper end of the
retracement zone in short term.
Bears are resting and we may
not see huge volumes and volatility as Global Market will be witnessing Holiday
season ahead. No major clues from the Global Market till Mid Week of January 2016.
Verdict – Longs on every
support zone of 7720 - 7660 – 7610 with stops below 7540 | Target zone near to
7980 – 8090 in short term.
BankNifty similarly
following the footsteps of Nifty. Bounce to the retracement zone to find the
equilibrium, Resistance levels of 17080 – 17290 - 17490 in short term. Over all banking stocks
are weak on major timeframes. One should wait for the trigger and good support
from the bank index stocks to show some strength. BankNifty may not perform
that well like wise Nifty Index in terms of the Pullback unless the stocks turn
positive or some short covering is witnessed.
Watch out for
banking stocks to support the Bank Index. If not then one should avoid any
longs and shorts in Bank Nifty till the trend is not clear.
Verdict -
Small longs can be initiated on the levels around – 16300 – 16180 with
stop loss below 15900 closing basis.
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analysis useful.
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