EquityPandit’s Outlook for Nifty Bank for the week (January 25, 2016 – January 29, 2016):

NIFTY BANK:

Nifty Bank ended the week on positive note gaining around 1.90%.

As we have mentioned last week that support for the index lies in the zone of 14800 to 15300 where the channel support for the index is positioned. If the index manages to close below this levels then the index can drift to the levels of 13800 to 14200 where 1000 Daily SMA and 200 Weekly SMA are positioned. During the week the index manages to hit a low of 14755 and bounce to close the week around the levels of 15500.

Support for the index lies in the zone of 14800 to 15000 where the channel support for the index is positioned. If the index manages to close below this levels then the index can drift to the levels of 13800 to 14200 where 1000 Daily SMA and 200 Weekly SMA are positioned.

Resistance for the index lies in the zone of 15800 to 16000 from where the index has broken down the medium term bottom. If the index manages to close above this levels then the index can move to the levels of 16300 to 16500 where 500 Daily SMA and 100 Weekly SMA are positioned.

The index has formed a Hammer pattern in a downtrend around the strong support zone indicating the trend reversal.

Range for the week is seen from 14800 to 15000 on downside to 15800 to 16000 on upside.