Bank Nifty gave all time high this week and closed also at all time weekly/monthly high at 21444! High made was 21696 on monthly expiry day- Mar 30th. It almost reached our target of 21800 (3 digit Gann No).
Monthly chart showing Bank Nifty breaking out of Channel (Blue Dotted line) and moving along Gann 1/1 angle drawn from low of 13407(Feb 29, 2016). Coming Months it can move along 1/1 angle and move up. Breaking out above 1/1 angle will open possibility of sharp up move.
Inside Pitchfork (drawn at low of 8366) is showing breakout while Bank Nifty is facing resistance at 0.5 lower SD line on Andrew's Pitchfork. Breaking this line (above 21800) and sustaining above it may take Bank Nifty towards Median line i.e. a target of 24000/25000 in coming months.
Weekly chart shows bank Nifty bouncing back from lower 0.5 SD line on Andrew's Pitchfork (drawn at 13407). This week Bank Nifty may break 21800 and if sustained above that may reach target of 22500 (next 3 digit Gann No) where Median line is placed. Breaking 21300 may pull it down to 20700/20400 levels.
For coming week above 21565 target is 21800/22000. Below 21320 target is 21100/20850.
Solar Cycle:
Bank Nifty showing impulsive up move from starting of new major solar cycle on Mar 22. Cycle starting Dec 22 gave sharp up move of 2800 points till new minor cycle starting Feb 4. Cycle staring Feb 4 gave consolidation with upward bias. So will new cycle give us sharp up move? Let us look at possibilities from time analysis.
Gann Time Analysis:
Weekly time analysis gave us possibility of low made at 20423 on Mar 3 as major low for coming few months. Read analysis here https://optiontradingcafe.blogspot.in/2017/03/bank-nifty-eod-update-mar-29-for-mar.html
Let us come to monthly analysis. We know that as per Gann Time Analysis 7/13/17/26/33/39//52 weeks/months are important time periods for forming major top/bottom or reversal of the ongoing trend. If you take look at monthly chart, from low of 13407 made in Feb 2016, a top was made exactly after 7 months in Sep 2016 at 20576. Mar 2017 was 13th month from Feb 2016. So it may be a major top. But this contradicts our weekly analysis. So until 20423 is protected we assume safely that Bank Nifty is going to move up on Monthly basis. So now next important month will be 17th from Feb 2016 i.e. July 2017. So Bank Nifty may move up till July 2017 before any major correction on monthly chart takes place.
Short term charts:
5-Min chart showing possibility of formation of triangle pattern/Ending Diagonal termination in 5th wave of correction started from 21690. Bank Nifty is near lower line of channel(blue) and may find support at that level.
Tomorrow above 21470 target is 21550/21650. Below 21420 target is 21320/21220.
Comments
Post a Comment