Bank Nifty and Nifty Forecast for 15/10/2020: Technical Analysis and Trading Strategies

Today, the Nifty closed in green, a positive trend that was bolstered by advances in Bank Nifty. The American stock market also opened in the green, and SGX Nifty touched the 12,000 level. Technical analysis points towards a bullish trend, which could influence the market's trajectory for the upcoming sessions.

Key Observations

Today's Nifty hourly chart sees a hammer formation on the daily chart, indicating strong support at lower levels. Key support and resistance levels are crucial for traders. The highest open interest levels on the put side are at 11,500, and on the call side, they are at 12,000. This data suggests that 12,000 will act as a strong resistance. A breaching of this level and sustaining it could see a 100-point move on the upside. However, if the market opens lower or with minimal change, it may face selling pressure.

Bank Nifty Analysis

Bank Nifty is holding strong at support levels of 23,200 with a bullish trend. We are optimistic about a gap up opening on 15th October, with targets of 24,500 and 25,000 in the upcoming weeks. This positive forecast is influenced by the upcoming weekly expiry, which could trigger a short covering rally.

Key Points for Bank Nifty:

Support levels: 23,550–23,600 Resistance levels: 24,050 Once Bank Nifty clears the resistance of 24,050, it could potentially reach 24,300–24,500.

Nifty Analysis

With the Nifty standing at a crucial level, traders should anticipate a volatile expiry period. The key support and resistance levels for Nifty are:

Support: 11,880 Resistance: 11,975–12,050

Given the upcoming weekly expiry, a short covering rally is expected, which could lead to positive openings for both Nifty and Bank Nifty. The sector is particularly interesting, as we witnessed strong results from Infosys recently.

Conclusion

Given the technical analysis, the upcoming weekly expiry, and the current market dynamics, traders and investors can expect a positive outlook for tomorrow. Detailed analysis and trading strategies can be further explored through my telegram channel.

If you are a trader or investor, I recommend checking out my analysis for some great intra-day and short-term trading ideas.

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