On the daily charts, the index formed three black crow patterns, indicating that bears have taken control. Chart readers say that till the 39,800 level is crossed, sell-on rise approach is advised for the short term.
Here’s how analysts read the Nifty Bank pulse:
Kunal Shah, Senior Technical Analyst at
The index breached its important support levels, and pullback rallies should be utilized to initiate fresh short positions. The higher-end resistance is visible at the 39,500-40,000 zone, and the next support is seen at the 38,000 level.
Mehul Kothari – AVP, Technical Research, Anand Rathi Shares & Stock Brokers
At this juncture, the index is slightly oversold on intraday charts, and there is a previous swing low near 38,000 mark. Thus in the coming session we might witness a dead cat bounce in the market. In that scenario 39,500-40,000 might be a strong hurdle in the coming sessions.
Nity Bank formed a bearish candle on the daily scale and has been making lower highs-lower lows for the last four sessions. Till it remains below 38,888 zones, weakness could be seen towards 38,250 and 38,000 zones, whereas hurdles are placed at 38,888 and 40,000 zones.
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