Bank Nifty Technical Outlook for 27th May, 13

Bank Nifty Weekly Chart

Bank Nifty as on 24 May’13 – 12769.35 (-547.75)

Bank Nifty as on 24 May’13 – 12769.35

Bank Nifty as on 24 May’13 – 12769.35

From above charts of Bank Nifty, few things I would like to high light here.

  • Week begins with extreme Euphoria and Bank Nifty posted a new life time high of 13414.30. But that was happier moment for couple of minutes, immediate after which Bank Nifty started witnessing profit booking and major draw-down start happening. On same day Bank Nifty closed in red.
  • Even in 2010 when Bank Nifty posted new high of 13303.60 on 5 Nov’10, candle body was very small, it means price activity was very limited, and on next day it started giving up away. It is just like cracking another’s record for sake of putting yours.
  • In the weeks last session, prices made a low 12582.50, but from that level, Bank Nifty witnessed support and on closing basis, it closed with gains compare to prior session.
  • If you see in attached chart, still prices are hovering near trend line.
  • Last week, I had shown you Negative Divergence on weekly chart of Bank Nifty, which was honored. This week I have observed potential Hidden Divergence setting up between prices, if prices honor this divergence than we should be looking for at least retest of the highs.

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