NIFTY AND BANK NIFTY ANALYSIS FOR 17 APR 2023.

16 Apr 2023
1. US markets are mixed with S&P in consolidation, DJI bearish to neutral and NASDAQ bearish. This is because IT stocks are under pressure.
2. Europe and Asia is looking bullish.
3. SGX Nifty is indicating 58 points cut at 17813. India VIX is very low at 11.9 .
4. HDFC Bank has come up with very good result. whether this good news has already been factored in is to be seen. HDFC bank is extremely overbought in daily chart. So i expect some consolidation in HDFC Bank for next two days. otherwise HDFC Bank is in a very sweet spot and bullish.
5. ICICI Bank is looking bullish. But again it is overbought.
6. Reliance is looking choppy and weak.
7. Most of the Bank nifty stocks are looking over bought.
Analysis
1. HDFC Bank has still more steam left to go up. The only resistance it has is 1702 from where it has been rejected in jan 2023. If it crosses 1702, next tgt is 1725 which is the all time high. Any break below 1680 can only be considered as bearish.
2. Ahead of results on 22 Apr ICICI Bank may remain choppy with a negative bias. This will have an effect on Bank nifty. It is facing resistance at 900 and it has good support at 885 -880 levels. If it crosses 900, we may get 908 in ICICI Bank.
3. Kotak bank is overbought and SBI is choppy inspite of recent rally in bank nifty.
4. Reliance is choppy with a negative bias. IT with both TCS and Infy with result below expectations may remain under pressure. WE MAY SEE A BIG MOVE IN RELIANCE UP OR DOWN.
Trading Plan.
1. All indices and index heavy weights are bullish with HDFC Bank coming up with very good result.
2. IT is under pressure but they are oversold.
3. Index can remain over bought for long period of time with index stocks supporting it.
4.So i remain bullish on both Nifty and bank nifty. However i will wait for a dip till 17750 - 17800 levels in nifty and 41900 - 41750 in bank nifty before going long. Tgt for Nifty will be 17980 and bank nifty will be 42380 and 42660.
5. These dips may or may not come. Also it is better to trade cautiously now as the pull back may be sharp and painful.
6. Avoid taking sell position.
I AM NOT A SEBI REGISTERED TRADER. THIS INFORMATION IS FOR EDUCATIONAL PURPOSES ONLY. PLEASE CONSULT YOUR FINANCIAL ADVISOR BEFORE TAKING TRADE.