Here's how to trade NiftyBank and Nifty PSU Bank indices post RBI policy

NIFTY BANK: The Nifty Bank has seen a sharp rally from 27,750 to 32,150 levels in the last 33 sessions. It witnessed one session of a “gap-up” close, whose range of 30,860 – 30,789 is not even filled. This purely indicates positive strength, which the index has held till now. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are trading in a negative crossover, which hint at selling pressure on an upside. Weakness can creep in if the index closes below 31,500 levels decisively. CLICK HERE FOR THE CHART

 

NIFTY PSU BANK: As of now, the Nifty PSU Bank Index has managed to stay above its 100-days moving average (DMA) located at 2,535 levels. The immediate resistance falls at 2811, which is its 200 DMA as per the daily chart. The RSI is trading in a negative crossover vis-à-vis the MACD, which trades with a positive crossover indicating a mixed signal. One can also view a “rounding bottom” formation with a breakout at 2,600 levels, suggesting a positive outlook for from a medium-term perspective.CLICK HERE FOR THE CHART

 

NIFTY 50: The Index is holding the “higher high, higher low” formation as per the daily chart. That said, selling pressure above 12,100 can be seen on the charts. On the other hand, a decisive close above 12,150 levels may take the index towards 12,340 and then towards 12,380 levels. Since the index is trading above 11,880, the upside momentum should hold. The RSI trades under the support value of 60. A fall below 55 may trigger a correction. The “golden cross” has a support of 11,800 levels, as per daily chart. CLICK HERE FOR THE CHART