Tech view: Should you use the rally in banks post the rate cut to exit?

Nifty PSU Bank index is showing a consolidation in the range of 1,600 to 1,200 levels. On the other hand, 22,000 mark is crucial for Nifty Bank.

Banking stocks were trading with decent gains on Friday after the Reserve Bank of India (RBI) slashed the repo rate by 75 basis points (bps) to 4.4 per cent, to fight Coronavirus (Covid-19) pandemic. The Nifty Bank index moved higher by 4 per cent in intra-day deals post the announcements.

Here's a look at how key banking indices look on technical charts and how you should trade them.

NIFTY BANK: The most significant level for this index is 22,000. Any move toward this may see extensive selling pressure. Going forward, the index might not show deeper corrective moves; however, the