Nifty Bank: Nifty Bank slipped over one per cent on Monday, breaching the 26,800 level in intra-day deals. The index has formed a “rising channel pattern” and has broken the support of lower rising trend line at 26,950.
A price channel is a continuation pattern that slopes up or down and is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line marks support. Price channels with negative slopes (down) are considered bearish and those with positive slopes (up) bullish.
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The low of the day has significance for the immediate trend in coming days. As the index has breached crucial support levels, the revival in positive trend needs to honour today’s low. The next support comes at 26,465, its 200-days moving average (DMA). On the other hand, the 50-day moving average (DMA) at 26,930 may act as resistance, chart suggests.
ICICI BANK: The stock has fallen consistently from the last seven sessions, slipping 9 per cent to Rs 339 levels. The immediate support comes at Rs 330, as per the chart. A breach of the same may lead to Rs 316, its 200-days moving average (DMA). For a rally from the current levels, the stock needs to stabilise above 100-days moving average (DMA), which is at Rs 345.
IndusInd Bank: The daily chart illustrates the formation of “Descending Triangle” pattern with a neckline at Rs 1470 level. The volumes around current market price of Rs 1478, nearing neckline seems below average. Only a strong selling pressure below Rs 1470 may lead to a breakdown, resulting in Rs 1420 and Rs 1380 levels, as per chart.
Punjab National Bank (PNB): The stock looks attractive on the chart, as it has managed to trade above crucial support levels. The 50 DMA comes at Rs 75.50 and the 100- DMA is placed at Rs 75.50. It has conquered 200- DMA recently, and now retesting lower side buying range, chart suggests.
State Bank of India (SBI): The stock is nearing its 200- DMA at Rs 275.50. The MACD (moving average convergence and divergence) has entered zero line, while the Stochastic has made a positive crossover below the oversold region. This implies that for a further up move, the stock needs to close above Rs 284 to head towards next resistance of Rs 290, its 50 days moving average (DMA).
Axis Bank: The stock is trading in an upper band of Bollinger Band, near its lifetime high of Rs 680 and has witnessed buying momentum recently. The support comes at Rs 640, its earlier resistance level now becomes buying level. It has minor resistance at Rs 675; crossing this on good volumes can see the counter hitting Rs 700 level going ahead, chart suggests.