Market Trend Lab

Today on downside banknifty is having support around 12350-12400 and on upside immediate resistance would be 12755-12800 . It is to be noted that banknifty is trading below all Daily and Weekly Agni and JBNSAR levels (mentioned on right side  of the blog)  and hence it is weak.   Weekly JBNSAR given sell signal yesterday at 12755. One can keep the stop loss around 12805 i.e. near daily agni level.

From last 3 days we are writing that banknifty is weak below 13205 level and more panic will fallow below weekly JBNSAR level of 12755 . Today banknifty made low of 12594.90. 

WE HAVE GIVEN STRATEGY FOR PNB AND ALBK BANK ON  14TH MAY 2013  AS: SELL PNB FUTURE @773 BUY ALBK FUTURE @123 TODAY  WE BOOKED PROFIT AS: PNB FUTURE @770 ALBK FUTURE @123.3  BOOKED PROFIT :  INR 2100 Note : Today We exited in ALBK in the morning itself and exited from pnb at the end of  the session as we applied rescue strategy for this pair specially (because of expiry near by and pair was in huge loss after entry and today it recovered all losses) .  Though such type of rescue strategy is not the style for pair trading. and it is applied in exceptional cases. ============================== For Steady Growth of Wealth 'Trade Less Trade Smart' WITH JUST BANKNIFTY

(Banknifty Daily Chart) Today Banknifty below Daily Agni and JBNSAR level 13205-13145 zone will be weak and further weakness may follow if it breaks support level of  12900-12940  which will take banknifty to Weekly JBNSAR level of 12755 .  Where as on upside it has series of resistance i.e. 13145-13205-13300-13414-13510.  Hence it will be difficult task for banknifty to climb up. There will be panic only below Weekly JBNSAR 12755 .  (Weekly JBNSAR given Long signal  @11371 ). This is the last hope for bull. On right side of blog,  Daily and weekly Agni/JBNSAR levels   are mentioned they act as important support/ resistance levels.. Note:  The country's largest bank  SBI  is due to announce its Q4 result  today . It is having highest weightage on banknifty index.

(BANKNIFTY WEEKLY CHART) Today will discuss some interesting observation made by me in Banknifty Weekly Chart (shown above one can double click on chart to enlarge the image): In above chart one can see one big triangle shown with black dotted lines. Triangle patterns are also known for false break out and brake down. So in above chart first we had false break down and next day quickly banknifty recovered and came once again into the triangle. What it does this time ?? Will it be false break out?? (Shown with yellow circle both break down and break out) Secondly one can see the RSI which i hope gives answer to above question. Here we have shown blue arrow one is positive diversion and one is for negative diversion. In past RSI given well in advance the signal for trend reversal. So this time ?? Remember it is a weekly chart and even if it gives signal for trend reversal in near by period, one should wait for price to react. Today Banknifty is having resistance around...

(BANKNIFTY DAILY CHART) Banknifty is trading in 2nd flag pattern of which pole is made and might start consolidation which is also known as resting period. The Flag pattern usually occurs after a significant up or down market move. After a strong move, prices usually need to rest. This resting period usually occurs in the shape of a rectangle, thus the word "flag". The Flag is considered a continuation pattern because after resting, prices will usually continue in the direction they did before. As expected yesterday profit booking started near our daily agni level of 13385. Intraday weakness persist as long as it stays below 13205 below which it has strong support around 12940 . Whereas above 13205  it has resistance around 13300 and than 13415.

(Banknifty weekly chart) This week Banknifty above 12755 will be strong and try to move towards 13500-13640 level.  Banknifty is highly overbought in day time frame and may see some profit booking near 13385 or 13500 level. It is having support near 13000-13055 level. For long term view one may go to below post dated 2nd Dec 2012: http://justbanknifty.blogspot.in/2012/12/banknifty-monthly-and-weekly-analysis.html