BANK NIFTY AT A SUPPLY ZONE. DEPENDS ON THE RESULTS.Bank nifty is near its swing high, it may take a correction or take out the supply zone with the short covering moves.
Here we analyze the PSU bank index, Private bank index, and ICICI bank to see what could be the scenario on Monday.
Today, we have ICICI bank's results which decide the Bank Nifty's run.
In the above image of the PSU bank index, we can see that the breakout has yet to happen. The breakout point is B. The supply zone is also 5% away from the breakout point.
Anyways, the PSU bank index won't be of much help as PVT bank contribution in Bank Nifty is nearly 87% and SBI alone from the PSU bank sector contributes nearly 12.5%
Out Private bank sector, ICICI is the second-highest contributor with nearly 21%. It is important for us to know where the PVT bank sector index and ICICI bank are standing right now.
In the above image of PVT bank index, we can see it is almost at the supply zone. It is very critical to have good results or else shorts could enter here.
Here's the ICICI bank index, it is trading above the monthly crab pattern's terminal price. Here it could be dangerous either for the longs or shorts. A rapid movement could come in any direction.
ICICI results could play an important on Monday but there would be other private banks that could cover the loss by reaching the expectations in case ICICI fails.
This is just my analysis and for educational purposes.
