EquityPandit’s Outlook for Nifty Bank for the week (December 12, 2016 – December 16, 2016) :

NIFTY BANK:

Nifty Bank ended the week on positive note gaining around 2.50%.

As we have mentioned last week that 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. During the week the index manages to hit a low of 17953 and close the week around the levels of 18696.

Minor support for the index lies in the zone of 18400 to 18500 on intraday basis. Support for the index lies in the 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.

Range for the week is seen from 17500 to 17600 on downside to 19400 to 19500 on upside.