Bank Nifty Prediction Week Ending : 26 July 2020

The Bank Nifty index in the past week faced resistance at 22650 and witnessed a retest of the support zone up to 21000, however, rebounded back up to 22000 towards the end of the week to reduce the weekly losses to 2%.

 Despite negative weekly closing, With Friday’s close, Index has for the 7th consecutive week managed close above 20250 which is 23.6% Fibonacci Retracement of the entire fall from all-time highs of 32613 to recent swing low of 16116, however, is finding resistance closer to 38.2% Retracement at 22400-22450. However, it has closed above the 100 DMA at 21500 zones.

Now Going forward, till 21400 holds this move can further extend up to 22500-22700 zone. Breach of Support level below 21400 will lead to profit-booking move up to 20800-20600.

Overall, For the next week, Bank Nifty The range could be 21300 - 22900. Technically, Key Oscillators RSI, Stochastic & MACD are above their averages on the Weekly, however below on the Daily Charts leading to buying support on dips around 21400-21550.

Tracking the Derivatives Data, BANKNIFTY witnessed OI unwinding to the tune of 6% with W-o-W closing negative by 2%. Call writers have built positions at 22000 (Total OI 5 Lakh Shares) while on Put side 21000 PE (OI 4.67 Lakh Shares) implying support 20800-21000 and resistance at 22000-22500

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