Bank Nifty analysis for next week

Bank Nifty managed to broke all time high has broken all time highs last December 2019 but covid-19 fear shuttered the progress the index had made in previous months creating one of the strongest bearish impulses in many years.

As supply and demand traders we must not sell after a very strong bearish impulse, it goes against the core concepts of supply and demand theories. There is a lot of room for Bank Nifty index to reach the weekly supply around 30200. Swing traders and intraday traders will have many opportunities to trade all the way up to that price level.

At Set and Forget trading community there are some Indian fellow traders that are long long term on Bank Nifty and Nifty 50 Index for various reasons explained in more detail in the trading community and the more advanced supply and demand concepts.

Higher probability Bank Nifty trading next weeks

It’s very important to trade these strong impulse in the context of a bigger picture trend and avoid trading counter trend scenarios. How can you buy Bank Nifty 50 futures or Nifty 50 related stocks in an uptrend? First of all you must look for impulses strong enough to create a series of wide candlestick bodies in the direction the of the long term trend. The Bank Nifty chart attached below represents the weekly timeframe. It shows a very strong bearish impulse to which price is being pulled.

Bank Nifty analysis for next week
Bank Nifty analysis for next week

Bank Nifty futures price action coming weeks

This is the kind of price action technical analysis you will learn in our traders community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action on Bank Nifty NSE index with your mind. 

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.

Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements on Bank Nifty NSE index.

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

If you want to view more index analysis like that you can visit our Index market analysis page.

Alfonso Moreno
Alfonso Moreno
Full time trader, expert technical analyst and founder of Set and Forget supply and demand online trading community. Traveler, photographer and adventurer.

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