Nifty and Bank Nifty Technical Analysis for 20 Dec’13

Nifty as on 19 Dec’13– 6166.65 (-50.50)    Bank Nifty as on 17 Dec’13– 11087.45 (-270.45)

We were expecting Nifty to test 6300 level, but unfortunately our expectation did not materialize, Nifty opened with minor gap higher and finally gave away most of the gains, or we can say turning every one skeptical. Technically Nifty formed Dark Cloud Cover and Bank Nifty gave pure Engulfing Bear Candle, both are representative of Bear Camp.  We will see further weakness in Nifty if it fails to hold above 6130 level.

Bank Nifty holds above 200 day moving average (11030), and most of the long stops shall be placed below this level. It seems that trading in Bank Nifty will be challenging here, because you need to take firm decision here, whether to turn Bullish or Bearish. If you ask us, we believe that still one chance should be given, and remain bullish or at least should not take bearish bet. However, momentum is clearly in favor of downside, so if at all Bank Nifty breaks below 11000 level, it should not be big surprise. But as we mentioned above, on an optimistic note, we like to give one more chance.

Just for the clarification, we clearly mentioned that unless and until Nifty breaks below 6230 levels, we are maintaining our positive bias.

Keep visiting Way2Profits, for genuine & unbiased Daily view on the Nifty and Bank Nifty.

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