Is correction in Bank Nifty a buying opportunity? Here's what charts say

The Nifty Bank has corrected 1.85 per cent from its recent high of 27,430 in the last four trading sessions whereas the frontline indices Nifty50 and BSE Sensex have fallen over 2.50 per cent during the same window. Both the benchmark indices Sensex and Nifty today breached their Thursday's low of 10,661 and 35,475, respectively. However, Nifty Bank has reversed from yesterday's low of 26,923.

Nifty Bank: The previous article on 'Nifty Bank' forming Golden crossover has indicated the significance of crossover in moving averages. The Nifty Bank is trading well above all the moving averages - 50-day moving average (DMA), 100- DMA and 200-DMA. Any correction in the index will support buying as per the technical chart.

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NSE Nifty50: The Nifty50 has recovered taking support of 50-DMA on the daily chart after correcting 2.70 per cent. The same scenario was witnessed recently when index made a low of 10,534. The support of 50-DMA has remained stronger with the rising trend, chart suggests.

BSE Sensex: The index made a low of 35,382 reversing from its 50-DMA located at 35,394 on the daily chart. At present, it is hovering around its 100-DMA of 36,650 levels. A stable close around these levels will incline towards the resistance of 35,960 - 36,050, its 200-DMA as per the chart. The MACD (moving average convergence and divergence) is on the verge of making positive crossover above zero line.