With the Nifty making a fresh all-time high and rewriting the history books as it managed to close above the 10,200-mark for the first ever. However, the Bank Nifty has failed to replicate the feat and, as a result, the Bank Nifty underperformed the Nifty index.
Bank Nifty, after registering the swing high of 25,105.35 as on September 18, 2017, witnessed a vertical fall and this sharp fall was arrested at the level of 23,611, which coincides with 100-day EMA. The Bankex index took around 7-8 trading sessions to reach the lower level of 23,611 from the swing high level of 25,105.35 and it took around 11-12 trading sessions to recover about 78% of its entire fall. After registering low of 23,611, it moved higher but the upmove halted near about 78 per cent of the recent downfall and, after that, Bank Nifty formed a high wave candle with shadows in either direction indicating uncertainty and indecision. However, it followed up with a gap-down opening, which indicates the weakness prevailing in the index. Among oscillators, the 14-day RSI is forming a lower highs, lower lows sequence and presently it is quoting at 49 level. Going ahead, the level of 24,000 is a crucial level to watch out on the Bankex, and a sustained close below the same will open up for downside up to the level of 23,600. On the upside, the index needs to sustain above the level of 24,800, and a sustained close above the same would result in an upside rally towards the all-time high levels.