EquityPandit’s Outlook for Nifty Bank for the week (December 05, 2016 – December 09, 2016) :

NIFTY BANK:

Nifty Bank ended the week on negative note losing around 1.40%.

As we have mentioned last week that the index has closed around the support zone of 18400 to 18500 where the index has taken support in the month of July-2016 & August-2016. If the index manages to close below these levels then the index can drift to the levels of 18000 to 18100 from where the index has bounced on 09/11/2016. If the index closes below these levels then the index can drift to the levels of 17600 to 17700 where long term moving averages are lying. During the week the index manages to hit a low of 18164 and close the week around the levels of 18248.

The index has closed around the support zone of 18000 to 18100 from where neck-line of the Inverse H & S pattern formed from August-2015 to July-2016 is lying. If the index closes below these levels then the index can drift to the levels of 17700 to 17800 where long term moving averages are lying. Below these levels the index can drift to the levels of 17000 from where the index has bounced on Brexit day.

Resistance for the index lies in the zone of 18800 to 19000 from where the index has broken down from the October lows and also medium term moving averages are lying. If the index manages to close above these levels then the index can move to the levels of 19500.

Next week there will be RBI policy so high level of volatility might be seen.

Range for the week is seen from 17500 to 17600 on downside to 19000 to 19100 on upside.