BANK NIFTY near long term and Multiple support Zone

BANK NIFTY near long term and Multiple support Zone  also people very pessimist on banks as it always happens. I always prefer buying such panics where long-term channel suggests supports because Risk to Reward becomes more favourable.

banknifty multiple support

Why Banking stocks collapsed ??

Bank Nifty and banking stocks started to  crack after rupee moved from 55 to 61 and started taking support at 10800-11000 levels.

But RBI suddenly moved and raised CRR for liquid funds and Bonds  to strengthen rupee against US$ which made bank nifty and banking stocks to crack below this and now banking stocks are falling like pack of cards and making 52 weeks low and even nearing 2009 lows.

Now after RBI move rupee is retracing and moving lower from the highs of 61.5 to close of 59 levels. Any close below 58.80 will further strengthen to 57-56 zone.

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Now we look at charts which is self explanatory where

(1) is long term Support channel for past 12 years.

(2) is another support channel from 2005 where every crash has been taken support.

(3) is another support channel from 2009 till current date which has not been violated.

(4) is probable support zone where all (1) , (2) and (3) lines are meeting and also Golden ratio of 61.8% retracement is coinciding the support comes from 10000 to 9800 zone where one can buy banking stocks and bank nifty for short term and possibility of getting 12-17% returns is highly possible.

Few charts recommended to premium clients in past few days also posted here https://www.facebook.com/chart.idea . ALso Intra updates are shared on this FB page.

 for SUBCRIPTION click here (you will get buy /sell with SL which are not informed here)

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Click on the charts to enlarge. 

banknifty longterm july2013

Zoom chart

banknifty longterm support zone july2013

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