EquityPandit’s Outlook for Nifty Bank for the week (October 03, 2016 – October 07, 2016) :

NIFTY BANK:

Nifty Bank ended the week on negative note losing around 3.10%.

As we have mentioned last week that minor support for the index lies in the zone of 19700 to 19750. Support for the index lies in the zone of 19500 to 19550 from where the index broke out of the top made in the month of August – 2016. If the index manages to close below these levels then the index can drift to the levels of 19000 to 19100 from where the index has broken out of the 4 weeks of consolidation. During the week the index manages to hit a low of 19059 and close the week around the levels of 19286.

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. If the index closes below these levels for couple of days then the index can drift to the levels of 17800 to 18000 where long term moving averages are lying.

Resistance for the index lies in the zone of 19500 to 19700 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.

Range for the week is seen from 18400 to 18500 on downside to 19600 to 19700 on upside.