Bank Nifty-Weekly Views

The Bank Nifty managed to post a new ATH. Past week saw a range 500+ points of consolidation. The components displayed mixed action at the individual stocks level We see the Index continuing to move in a channel with top at 44250 and lower end at 42200 with a pivot at 43200. Till we see a close below 42600 the trend is considered as bullish. However, there seems to be Hanging Man type candle (though not perfect) on Daily time frame. There may be hurdles at 43900-44050 range. This week is crucial to see whether the Bank Nifty breaks the barrier and makes another new high or breaks down. We can assume that the trend still remains positive till we see a close below the trend line support at 42200. It appears that the Bank Nifty is likely to continue in a wider range of 42200-44200 with 43200 as pivot and a breach and close above or below could see the next range of 900 points. For now, Bank Nifty continues to be in a trading range. A daily close outside the broader range indicated above would require re-evaluation. It is worth noting that for any correction first requirement would be a daily close below 42900.

Note: Though the market has not seen any major sell-off in this segment, a bit of slowdown in the pace of advancement and a tuff barrier seen around 43800-44050 range. Need to exercise caution. Possible that the valuation of PSU banks still not very attractive for dis-investment arguments.

Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.