According to the technical analyst, the indices current market price, and identified short-term bullish trend, presents an opportunity for investors to potentially generate positive returns
According to the technical analyst, traders are highly recommended to accumulate the Nifty and its underlying constituents during any dips, preferably near the support levels
Nifty Bank, in particular, has emerged as the front runner of the reversal rally. The banking index has gained 6.60 per cent and overcame vital hurdles in the recent sessions.
According to Ravi Nathani, an independent technical analysts, the Nifty Bank Index is expected to face significant resistance around the 42,700 level in the near term.
The technical analyst recommends to employ 'buy-on-dips' trading strategy for Nifty, given positive outlook for the index in the short term
Analysts expect the underperformance in bank stocks to continue ahead as the current fears around the banking sector globally are likely to persist for some time
The technical analyst expects an upside target of 17,800 - 17,900 on the Nifty, with stop loss of 17,400.
if the Bank index succeeds to close over 41,000 mark, which is right above its 21-DMA, the short-term upside may poised to rally towards 42,000 level,
According to the technical analyst, Bank Nifty's break out from within the range of 41,725 to 42,725, would indicate a trend change in the charts
So far in 2022, the Nifty Bank Index has soared 24 per cent, far outperforming the benchmark indices, the BSE Sensex and Nifty 50, which have gained close to 8 per cent each.
At 10:35 AM; Nifty Bank, Nifty Financial Services, Nifty PSU Bank and Nifty Private Bank indices were up in the range of 0.10% to 0.90%; while Nifty Auto and Nifty Realty indices slipped up to 0.2%.
Global factors causing a slowdown and overexposure to this sector are key risks
Both stocks were the biggest gainers in both the Sensex and Nifty indices and accounted for nearly half of the gains made by these indices
Here's how key constituents of the Nifty Bank index look on the charts.
Engineering and capital goods companies are likely to see revenue growth momentum, led by robust order backlog and pick-up in execution
The 200-DMA is generally a good indicator of a long-term trend
More than the monetary policy decision, the RBI's assessment of inflation and growth propelled the markets, said experts
The Reserve Bank of India's (RBI's) 50-bps repo rate hike triggered a sharp pullback rally in banking stocks on Friday. The Nifty PSU Bank index did even better with a rise of 3.01 per cent
Here are trading strategies for key banking stocks that will help you maximise your gain.
Bank of Baroda, Canara Bank, and State Bank of India may see even better returns as they have also broken out of "Double Bottom" pattern