BANK NIFTY

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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.

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