Business Standard
Web Exclusive

Do not expect a deeper correction in Nifty Bank till 29,800 level holds

Going ahead, the immediate trend suggests the index will continue on its journey north provided it trades above 29,800 on a closing basis

Avdhut Bagkar  |  Mumbai 

Till Bank Nifty Holds 29,800 levels, Can Expect 31,000 in Coming Sessions
Bank Nifty stays strong above 29,800

A robust rally in has driven the index to its new all-time high levels. The index has outperformed other indices, except Nifty Financial Services, since March 12, 2019. The index is currently trading at 30,008 levels in intra-day deals on Wednesday, which is 5 per cent higher than its previous all-time high. The Nifty Financial Services index, on the other hand, has jumped 7 per cent during this period.

Going ahead, the immediate trend suggests the index will continue on its journey north provided it trades above 29,800 on closing basis. Till now, it has seen buying come back around those levels when the index witnessed mild correction.

The technical oscillator (Relative Strength Index) and (moving average convergence and divergence) have made negative crossovers, especially which is showing negative divergence and indicates weakening strength and weaker upward move. However, till index holds significant that lies at 29,800 levels, one should not expect a deeper correction.

Another indicator - - that determines the change in direction, has come out of the oversold region. Hence, if the index manages to hold 30,000 levels, then it may head towards the recent high of 30,600 levels. CLICK HERE FOR DETAILED CHART VIEW

Based on the candlestick patterns, the recent “Bearish Engulfing Candle” dated April, 8 shows 29,716 is another pivot level for Intra-day trading. Any trades below the same may see more selling pressure, resulting in negative sentiment.

First Published: Wed, April 10 2019. 12:19 IST
RECOMMENDED FOR YOU