Bank Nifty-Weekly Views

The Bank Nifty managed to post a new ATH.of 44151 and saw a strong sell-off which made the index to loose about 1K points. There has been a varied price action within the components. We see the Index continuing to move in a channel with top at 44250 and lower end at 42200 with a pivot at 43100. The weekly candle coupled with the Oscillators paint a negative picture. There may be hurdles at 43600-43900 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 43100 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: Tough times ahead as we see a bit of slow-down in the pace of advancement and a tuff barrier seen around 43800-44050 range. Need to exercise caution. PSU banks may provide opportunities for Fresh entry levels on a deeper correction.

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