Nifty & Bank Nifty Prediction for Next Week 31-08-2020 to 04-09-2020


Last week Nifty gave breakout above 11500 and closed at 11647 with the help of Breakout in Bank Nifty. Yes Nifty managed to sustain above 11500 just because of Bank Nifty, i will discuss reason below. Overall market was bullish last week and positive breakout in Financial Sector. In coming week of Sep'20 Nifty should remain positive and need to sustain 11500 on closing basis then only we can say trend is positive. 

Weekly Chart of Nifty-50:-

On a weekly chart Nifty managed to sustain above Long Term Trend line drawn above with Blue Color and did closing above it which is positive sign for Nifty. As far as Nifty sustain above that Blue Color Trend line we may see upside levels of 11750 after that 12136.

Daily Chart of Nifty-50:-

On a Daily Chart Nifty is moving up in a range of 80-100 point as you can see above chart. Now 11550 is strong support for Nifty as per trend line and Strong Support at 11385. I have mentioned all important levels on chart. If you look at the intra day chart then you will notice that the moment Nifty start trading near day high and reversed back and reason is "Reliance Industries". Last week Nifty moved exactly as per Reliance. The moment Reliance moves high Nifty also start moving high and Reliance down then Nifty also Down. And therefore for Coming week Reliance will Decide the Trend of Nifty. 

A part from that Next week range for Nifty would be 11550-11750/11850 as shown in above chart. One more thing to note is Put Call Ratio which is at overbought zone of 1.68, Due to this we may see profit booking at each up move.

Option Chain Analysis of Nifty for Expiry on 03-09-2020:-

As per Option Chain Data for Next expiry, Nifty may trade between 11500-11800. Current Closing price of Nifty is 11647 and Highest call writing happened at 11700-11800 strike price with 16 Lac and 18 Lac open interest. Hence, around 11700-11800 nifty may face Resistance. Regarding support level then 11500-11600 can play a role of good support for Nifty in Next week with Highest Put writing. The positive point in above data is that Call writers of 11500-11600 are trapped and therefore downside is limited for Nifty. 

India VIX:-

Volatility Index is moving down which is good for market. As far as VIX remain below 20 market may stay up with overall positive sentiments. Put Call Ratio at 1.68 which is overbought. VIX at oversold and Put Call ratio at Overbought and such combination suggests profit booking on upper side.

How To Trade in Nifty for Tomorrow:-

One can buy around 11600-11650 zone with Stop Loss of 11550 for target of 11700/11750. But due to overbought PCR if we get any dip towards 11550-11600 then that will be best buying area with Stop Loss of 11500 for Target of 11700/11750.

No short entry for Tomorrow.

Bank Nifty:-

Bank Nifty has performed outstanding with breakout above 23000 and closed at 24528. Bank Nifty has still up side towards 26000 as per weekly chart. For coming week Bank Nifty can perform better than Nifty. From Bank Nifty index majority banks have did breakout last week and positive momentum can be seen in overall baking sector in coming week also.

Weekly Chart of Bank Nifty:-

As per weekly chart Next resistance for Bank Nifty is at 26000 and to test that level Bank Nifty has to manage 24000-24500 zone on closing basis. In Oct'2018 Bank Nifty took support at 24400 and then moved to 26000 and currently also trading at same level, and therefore is sustain above 24000/24500 then again it can test level of 26000. Not in Next week but during Sep'20 Bank Nifty can test 26000.

Option Chain Analysis of Bank Nifty for Expiry of 03-09-20:-

As per Option Chain Data of Bank Nifty, it may trade between 24000-25000. Strong Support at 23500-24000 range with Highest Put writing and strong resistance at 25000-25500 range with highest call writing. Here also call writers are trapped between 23500 to 24500 strike price as current closing is above 24500 at 24523. And therefore once Bank Nifty start trading above Friday's high we may see fresh buying and short covering.

How To Trade in Bank Nifty for Tomorrow:-

One can buy around 24200-24500 with stop loss of 24000 for Target of 24800/25000. 

Or wait for some down side towards 24000-24200 for best buying level with stop loss of 23800 for target of 25000-25500.

No short entry for tomorrow.

Thank You..!!

Happy Trading..!!

"Learn & Earn"...!!!

(Disclaimers:- Above is my personal view on market for next week. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).


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