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Bank Nifty: It's Worth a Shot

Feb 21, 2023

The Bank Nifty index has put pressure on the Indian share markets in the last three trading sessions. Meanwhile, IT stocks and energy stocks have managed to take the Nifty 50 index higher.

Yesterday's bearish momentum of over 700 points from the day's high in Bank Nifty was heartbreaking for the bulls as Nifty 50 was on the verge of breaking out from the key psychological level of 18,000.

Bank Nifty is trading at the crucial support zone and retesting a bullish pattern.

Bank Nifty Technical Chart

 

Here are three observations which traders should know.

  1. Bullish Reciprocal AB=CD reversal column low is placed at 40,500 and will act as a support zone.
  2. 21EMA level has been a foothold for bulls and bears.
  3. The 61.80% Fibonacci retracement of the anchor column.

The technical level suggests a reversal is on the cards.

On the derivatives front, the Put-Call Ratio (PCR) is trending at an oversold level of 0.5 indicating the short-covering rally can be on cards.

The technical pattern may negate on breach of 40,000.

At present, the Bank Nifty index is trading up by 0.4% at 40,880 levels. From the Bank Nifty index, HDFC Bank and ICICI Bank are the top gainers.

I'll share more on his trend on my Telegram group. If you're interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel - Fast Profits Daily.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

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Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Brijesh Bhatia

Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.

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