Bank Nifty-- Weekly Views

The sell-off in Bank Nifty continued for the second week with a stronger momentum resulting in the Index testing a low of 41600. Technically the break below 43100 triggered the down move. Break below 42200 is still a sign of bearishness. We see the Index continuing to move in a channel with top at 44600 and lower end at 41800 with a pivot at 43100. The weekly candle coupled with the Oscillators paint a negative picture. There may be hurdles at 42900-43100 range. This week is crucial to see whether the Bank Nifty breaks the crucial channel support at 41700-41800 zone or holds. The scenario for now is negative till we see a close able 43K. It appears that the Bank Nifty is likely to continue in a wider range of 41700-44200 with 43100 as pivot and a breach and close above or below could see the next range of 900 points. For now, 41700 is the crucial level to be watched. And break on a closing basis would mean there is deeper correction ahead towards 40685 and then to 39800. A daily close outside the broader range indicated above would require re-evaluation.

Note: Tough times ahead as we see a bit of slow-down in the pace of advancement and a tuff barrier seen around 42900-43100 range. Need to exercise caution. PSU banks may provide opportunities for Fresh entry levels on a deeper correction.

Seasons Greetings and Best wishes for a Happy New Year 2023

Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.