Flash News Investment - - TECHNICALS -

On the weekly time frame, af­ter reg­is­ter­ing high of 28,388.65 in the last week of Au­gust, 2018, the bank­ing bench­mark in­dex

Bank Nifty wit­nessed a sharp cor­rec­tion of al­most 14.5 per cent; how­ever, the price took sup­port around the lower end of the chan­nel, which was plot­ted by join­ing lows which were seen in the month of March 2018.

The in­dex bounced back from the lower end of the chan­nel, how­ever, it faced re­sis­tance at

38.2 per cent re­trace­ment level of the last leg of de­cline which started from level of 28,388.65 to the low of 24,240 and its

52-week SMA. Go­ing ahead, the bank­ing in­dex has strong sup­port in the re­gion of 24,250-24,630 as it is a con­flu­ence of 78.6 per cent re­trace­ment of the en­tire up­move from March to Au­gust, i.e. from 23,605 to 28,388.65 and the lower end of the chan­nel is placed in this re­gion. On the up­side, Bank Nifty needs to get past the im­me­di­ate re­sis­tance level of 25,350-25,400 and mov­ing past this zone would prob­a­bly open up for fur­ther up­side up to the lev­els of 25,830-25,930 as it is the con­flu­ence of 38.2 per cent re­trace­ment of the last of de­cline (28,388.65- 24,240) and the 52-week SMA. The 14-pe­riod RSI on the daily chart is quot­ing around the 50 mark and it has re­cently marked a fresh 14-pe­riod high, which is bullish. The daily MACD is trad­ing above its sig­nal line.


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