EquityPandit’s Outlook for Nifty Bank for the week (October 17, 2016 – October 21, 2016) :

NIFTY BANK:

Nifty Bank ended the week on negative note losing around 2.00%.

As we have mentioned last week that 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. During the week the index manages to hit a low of 18824 and close the week around the levels of 19020.

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 index has broken the trend-line joining the lows of March, April, May & June also coincides with the support zone of 19000 to 19100. Minor support for the index lies in the zone of 18700 to 18800 where medium term moving averages are lying. If the index closes below these levels for couple of days then the index can drift to the levels of 17300 to 17500 where long term moving averages are lying.

Minor resistance for the index lies in the zone of 19300 to 19400. 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 18500 to 18600 on downside to 19200 to 19300 on upside.