Daily Nifty Bank Technical Report 26 November

Sensex (20605) / Nifty (6115)

The opening session of the week started on a cheerful note. The index then maintained its optimism throughout the session and went on to post sizable gains of two percent. Barring IT, all other sectors contributed in yesterday’s rally. The Capital Goods, Banking and Realty counters were among the major gainers and advance to decline ratio was strongly in favor of the advancing counters. (A=1423 D=1027)

Formation

  • The ’89-day EMA’ and the ’89-week EMA’ are placed at 20064 / 5963 and 19049 / 5720 levels, respectively.
  • The ’20-day EMA’ and the ‘20-week EMA’ are placed at 20578 / 6108 and 20088 / 5974 levels, respectively.
  • The monthly momentum oscillators are now positively poised; whereas the weekly momentum oscillators are contradictory.

Trading strategy:

Yesterday, the bulls snapped three consecutive day’s losses and managed to close convincingly above 6100 mark. As stated in our previous report, the support zone of daily ’89 EMA’ proved out to be a major hurdle for the bears. The broad based rally across all major sectors elevated the market from the crucial and strong support zone. Going forward, the possibility of testing 6213 cannot be ruled out if it sustains above 6124 levelin the coming trading sessions. On the other hand 6035 level may act as an immediate support for the Nifty.

Nifty Daily Chart

Actionable points:

View Neutral

Support Levels 6035 – 5970

Resistance Level 6125 – 6213

Bank Nifty Outlook – (11083)

On Monday, in-line with our benchmark index, the Bank Nifty too opened with an upside gap of nearly one percent and traded with positive bias throughout the first half. The index then took a breather around midsession and after a decent consolidation, once again broke out from the intraday range to post a mammoth intraday gain of four percent. In the process, the Bank Nifty has now penetrated the ‘Downward Sloping Trendline’ (pleaserefer the exhibit) and is now nearing a major resistance level of 11208. Any closing above this level may attract strong buying interest among market participants. In this scenario, the index may advance to immediate upside levels of 11400 – 11510. On the flip side, 10923 –10780 are seen as immediate support levels for the Banking index.

Bank Nifty Daily Chart

Actionable points:

View Neutral

Support Levels 10923 – 10780

Resistance Levels 11208 – 11400

Leave a Reply

Your email address will not be published. Required fields are marked *