Bank Nifty levels of 26500-26700 will be short term resistance zone

Vinayak Gangule
/ Categories: Trending, Markets

On November 14, 2018, Bank Nifty came out of weekly contracting consolidation zone. On the weekly time frame, the index formed bullish candle carrying long lower shadow as on week ended November 16, 2018, and for the first time, it has closed above the 21-week exponential moving average (EMA) after September 21, 2018. Among banking stocks, ICICI Bank and HDFC Bank have outperformed Bank Nifty, while on the flip side, Kotak Bank has unperformed  Bank Nifty.

On the daily time frame, the index has manged to close above 200-day EMA. Indicators and oscillators have also given consolidation breakout on the daily scale. The 14-period RSI has given breakout above 60 for the first time since August 28, 2018, which is now quoting at 62.50. The volumes are relatively low. Option data suggests highest open interest in 26000 PE option and 26500 CE option.

For the coming weeks, the levels of 26,500-26,700 will be the zone where minor profit-booking would be possible and the short term 21-day EMA will act as the support zone. 

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