Nowadays, nifty and bank nifty are trading in opposite directions. Nifty has made lifetime highs and sustaining there. However, the bank index is taking a rest but if we see the chart then it is making a major bullish chart pattern on the weekly plus daily chart. Nifty is turning down for correction but needs confirmation on the chart.
Nifty 50: On a daily chart, Double Top has been created and now trading near support. If nifty breaks support and stop below then we can expect correction till 15500/15400. We have to keep our eyes on heavyweight banks, they can lead to bank nifty as well as nifty. The important support is around 15650 and resistance is around 15850. Currently, 20 DMA is giving support but it's the monthly average price. So keep watch on levels and wait for breaks up or down.
The weekly chart also showing consolidation.
Nifty Bank: If we focus on the current scenario then the bank index is in the yellow zone and getting ready to come in green. Look at the broad range, there is an Inverted Head & Shoulder on daily and weekly time frames. It is the signal of a U-turn but we have to wait for a confirmation break to the neckline. Right now it is trading near support level i.e. 34700 and important resistance is around 35500. Also, 20 & 50 DMA coming closer and the price is trading in between. There are more chances of a breakout.
It is looking strong on the weekly chart.
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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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