Nifty & Bank Nifty Prediction for Next week 10-8-20 to 14-8-20

Nifty Next Week:-

Last week Nifty traded in the range of 10882 to 11257 and closed at 11214 after taking good support at lower trendline on weekly as well as daily chart. If Nifty continues with this trendline then for next week Nifty may trade in the range of 11100-11500 that is 400 points. Current closing is 11214 and if in next week Nifty first correct to level of 11100 for any reason then it would be best buying zone with Stop Loss below trendline for target of 11500. And if Nifty first moves towards the level of 11500 then it would be best selling zone with stop loss above trendline for target of 11100.

Since last 3 weeks nifty is trading in rage of 325 points (Approx) on weekly chart. Once Nifty starts trading out of this trendline on either side then we may see expansion in trading range.

If you see Trendline on weekly chart, you will notice that trendline is becoming smaller and smaller and signalling breakout or breakdown in coming 1 to 2 week. Those who are positional trader they have to follow this trendline till breakout or breakdown above or below the trendline.

The above observation is only based on trendline in which Nifty is trading since March-20 that is for 5 Months.

Weekly Chart of Nifty:-

 Daily Chart of Nifty:-

Option Chain of Nifty for Expiry on 13-08-2020 :-

As per Option chain also same situation is reflected as mentioned above that nifty may trade in range of 11100 to 11500. And therefore highest Put writing can be seen in the rage of 11100-11000 that is lower end of trendline as strong support and highest Call writing can be seen in the range of 11300-11500 that is upper end of trendline as strong resistance. And 11200 is make or break level for next week because both buyers and sellers are active at 11200 strike price with same amount of open interest. Click here for Option Chain Data.

Bank Nifty Next Week:-

Bank Nifty is trading in bigger range of 23300-21000 since last 4-5 weeks and current closing is at 21754. Technically Nifty is respecting the level of trendline and therefore view is taken based on trendline level, however for Bank Nifty view will be taken from Support and Resistance level because Bank Nifty is stuck in 2000 points range between 21000 & 23300. So fresh move starts once it breaks the level of 21000 on lower side and 23300 on upper side.

On weekly basis the trading rage comes to 1000 points (Approx). And therefore risk reward ratio will not be favourable. If you look at the weekly chart you will find that 21000 is good support after that 22000 is resistance and then again at 23000-23300 level big resistance.

Best way to trade Bank Nifty next week is waiting for level of 22000 first because current closing of 21754 which is near to 22000. If it is manage to close above 22000 then one can buy for target of 23000-23000 which is next resistance level with stop loss of 22000. With this trading set up we can manage our risk to reward at favourable. And somehow if fails to hold 22000 and remain below 22000 then one can short with stop loss of above 22000 for target of 21500-21000. 

Above observation for Bank Nifty is taken from weekly and Daily chart with support and resistance level.

Weekly Chart of Bank Nifty:-

Daily Chart of Bank Nifty:-

Option Chain of Nifty for Expiry on 13-08-2020 :-

According to Option Chain Highest call writing can be seen in the rage of 22000 to 23000 which is to be treated as resistance area. And Highest put writing can be seen in the rage of 20500 to 21500 which is to be treated as support area. Option chain and Chart more or less showing the same situation of support and resistance level. Click here for Option Chain Data.

(Disclaimer:- Above is my personal view on Nifty and Bank Nifty. It is not paid advice nor tip. Take your own decision.)

Thank You..
Happy Trading.
"Learn & Earn Motive Only."


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