BankNifty Analysis 02/02/2018

Last Week, Call it Magic or Logic number of 27480 in Bank Nifty, gave us understanding of the markets setup, bank nifty closed 27498 on 29/1//2018, From 30th Jan i.e. Tuesday onwards BNF tried breaking 27480 levels, failed for 3 days, then on 2nd Feb Friday, we saw crash in bank nifty & closed at 26451, Now it’s a history.

 

What’s the learning?

Last 15 days, Bank Nifty zoomed past 26000-27000 levels in 3 Days.

Thereby to identify support, its bit tricky – Anyways we can keep 2nd Feb 2018, low as the first support (26354), the next support comes at 26050 & 25840.

Bank Nifty, if it keeps correcting, for the record nobody knows it by the way, can see some breathing space at these levels.

However, BNF closes below 25840 for a week, and then it would be a deep correction we can expect in BNF
BNF holds huge support around 25840-25340

Any Break 25340 – It’s Crash in BNF to lower levels further

 

So what’s on UPSIDE

Lookout for 26770, 26950 any close above 27250, Bulls will come back to the territory, and 27480 is again the magic number for bulls to dance, till then let’s give bulls a bit of relaxation, last year they were on fire.

 

What’s the tactics for the coming week?

Take day by day

Government may come up with some narratives to hold the markets

On this type of corrections, usually Monday will be follow up –could be again 100-200 points gap down, my guess is as good as yours.

Let markets decide its direction

But this is how we need to get prepared

  1. What to do if it gaps down
  2. What to do if it gaps up
  3. What to do after markets open sideways
  4. Should we be a buyer as markets have corrected huge on friday
  5. Should we continue selling the markets ,if markets moves up and reverses
  6. Have a plan before the trade

 

All the best

 

 

 

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