Market Outlook for Next Week 21-09-2020 to 25-09-2020


Last Week we have seen range bound trading in Nifty with trading range of 11380-11620 and closed at 11504. On a weekly chart Nifty is facing resistance around 11600 and struggling near long term trend line. And for coming session if nifty start trading below 11380 we may see downside rally towards 11200-11100. And for fresh up side Nifty has to give decisive closing above 11600.

Daily Chart of Nifty-50:-

On a Daily Chart Nifty has formed Resistance around 11550-11600 and support at 11350-11400. And we may see fresh upside above 11600 and fresh downside below 11350. As per Price action of Friday session it looks that market is ready for correction because there is continuous selling by FII/DII during last week and therefore trend may remain negative for coming week also. For coming week market may trade between 11350-11600 and fresh rally only above or below this level.

Weekly Chart of Nifty-50:-

As per weekly chart Nifty is facing perfect resistance at Long Term Trend Line. And therefore market is taking time in this zone. If Nifty fail to sustain above 11500 then we may see downside rally and above 11550-11600 we may see breakout above trendline and fresh rally may start from here. 

Option Chain Analysis of Nifty for Expiry of 17-09-2020:-

According to Option Chain data there is support at 11400 with 25 Lac Open Interest and if fail to sustain above 11400 then next support is placed at 11200-11000 with Highest Put writing for coming week. And strong resistance around 11500-11600 with massive call writing of 32 Lac and 34 Lac Open interest. Currently put writers of 11500 will be in risk if Market start trading below 11500 because there are huge put writers with 34 Lac Open Interest. And therefore for coming week 11500 will be make or break level for index.

India VIX:-

Volatility Index is trading around 20 since last one week indicating cautious trading move. Interesting thing is that during intraday session VIX is not reacting much. Like on Friday session we have seen big move on index but VIX closed in red. So in coming session we have to see how VIX is behaving with movement in Index.

How To Trade in Nifty for Tomorrow:-

One Can short in the Range of 11520-11500 with Stop Loss at 11600 for Target of 11450-11400.

Fresh short entry can be Initiated below 11450 with Stop Loss of 11500 for Target of 11400-11350.

One cay Buy above 11600 only With Stop Loss of 11550 for Target of 11650-11675.

(Probability of Buy entry is 30% and Short Entry is 70%)

Bank Nifty:-

Bank Nifty continuously showing downtrend on daily chart and weekly chart. Majority of Banking Stocks are showing downtrend and therefore it's look like there may be some bad news awaited. With downtrend in Banking Sector Nifty is also facing resistance and showing signal of downtrend. If Bank Nifty starts showing positive price action above 22500 then we may see some upward rally towards 23000 and below 22000 we may see downside rally towards 21500-21000.

Daily Chart of Bank Nifty:-

On a Daily chart Bank Nifty is showing chances of Breakdown below 22000 and may test level of 21000-20800 in coming trading session. And if sustain above 22500 then it may re-test resistance level of 23000. Fresh upside can be expected only above 23000 and fresh downside below 22000. 

Weekly Chart of Bank Nifty:-

On a Weekly chart also there is no much difference in Trading range, the same trading range can be expected for coming week that is between 23000 to 21000. And if remain between 22000-22500 then we may see expiry between this range only. 

Option Chain Analysis of Bank Nifty for Expiry of 17-09-2020:-

According to Option Chain data of Bank Nifty there is heavy call writing between 22500-23000 and therefore difficult to sustain above 22500 and on downside support is weak around 21500-22500. Below 22000 Put writers may starts unwinding their position and shift support level to 21000. And above 22500 we may see short covering rally towards 22800-23000. For coming week 22000 will be the make or break level for index.

How To Trade in Bank Nifty for Tomorrow:-

One can short between 22100-22000 range with Stop Loss of 22200 for Target of 21700-21800.

One can buy above 22450 with Stop Loss of 22300 for Target of 22500-22600-22700.

Fresh Short can be Initiate below 22000 with Stop Loss at 22100 for Target of 22800-22600.

(Probability of Short Entry is 80% and Buy Entry is 20%)

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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