In previous week Nifty initially bounced back to 17943 but failed to sustain above these levels and with global fears, nifty gave up on its gains later this week closing at 17335. Further in next week global fears may affect the Indian markets and Nifty may test its next support level near 17250 / 17020 / 16910 levels from where one can expect some bounce back. For next week nifty’s important resistance should be 17436 / 17662 / 17726. With current closing level of 17335, if nifty bounces back then the above levels can be used for sell on rise and above 17726 it may test 18000 levels again.
Figure 1: Nifty Daily
Bank Nifty also failed to cross above 41700 mark and now re-testing its breakout level (on daily chart) near 39640 / 39540 levels. Further below this it may test 38780 levels from where it may bounce back. Whereas on weekly chart BN has formed a double top pattern near 41855 levels. For next week Bank Nifty’s important resistance levels should be 39846 / 40886 / 39376.
Figure 2: Bank Nifty Daily.