Good Strength In Bank Nifty Than Nifty

In our last article Nifty was taking the support of Neckline and it has worked well from the same levels. Also, we had found Bullish Harami on Bank Nifty daily chart and it has performed well as per our expectations. Let’s take an overview of candle charts for both indexes.

Technical Overview of Nifty: We can see Nifty is giving respect to every “Support & Resistance”. On 23^rd September Nifty has opened the gap up and fallen down from its resistance i.e. around 11700. After 10 days of fall, Nifty has taken the support of Triple Top and given bounce. This game of support & resistance is going on and index is testing every level. In last week, Nifty has tried to cross it’s next resistance i.e. 12000, but not succeeded. Nifty is ready to touch 11700, but some banking stocks like YESBANK, ICICIBANK, INDUSINDBK, and KOTAK BANK are leading to the market. Currently, technical parameters and indicators are negative, once these bank stocks are stopped gaining then Nifty will come down.

 
As per our view, this is the No Entry Zone in Nifty. We have to wait for Breakout or Riskers can sell Nifty from current levels with a stop loss of 12035 on a closing basis. We are expecting targets of 11800/11700.

Technical Overview of Nifty Bank: As we have mentioned above some banking stocks are too strong on the chart and as per Options Data. On last Friday, Bank Nifty has crossed their resistance but closed below. On last trading day Bank Nifty has crossed and closed above the same resistance and given confirmation of Breakout. Secondary indicators like RSI, MACD are showing overbought however Bank Nifty is ready to touch its next resistance.

 
We can buy Bank Nifty from the current level for a target of 31300/31500/31700. Advice to keep a wide and tight stop loss of 30600 on a closing basis.

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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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