BankNifty gearing up for new highs: Angel Broking

Views of Mr. Ruchit Jain- Equity Technical Analyst, Angel Broking.

"The Nifty Bank index opened on a positive note and continued the positive momentum throughout the session. The index managed to end the session with gains of 1.42 percent over its previous session's close.

The Nifty Bank index resumed the broader degree uptrend and ended the session at a record closing high, led by the index heavyweights. The index had recently formed a 'Shooting Star' pattern on 18th April, which is a trend reversal pattern. However, looking at the broader uptrend and the resumption of the positive momentum from the '20 DEMA' support, we expect the index to to surpass the recent high of 21947, which would then negate the bearish 'Shooting Star' pattern. Hence, we continue with our optimistic stance on the index and advise traders to trade with positive bias. The index should continue the optimism towards the target of 22410, which is the 161.8% retracement of the previous corrective move. The stop loss on exiting long positions in the index can now be trailed higher to 21380. The intraday supports for the Nifty Bank index are placed around 21680 and 21580 whereas resistances are seen around 21950 and 22100."

Source : Equity Bulls

Keywords