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A Candlestick Reversal in the Banking Index

Apr 26, 2022

Banking stocks are outperforming the benchmark Nifty 50 index for the past couple of days.

Though the Nifty ended on negative note yesterday, the Bank Nifty index ended in green with the backing of private banks.

The Private Bank index and PSU Bank index are forming the bullish reversal candlestick pattern.

On Private Bank index, the bullish meeting lines candlestick pattern is visible on daily chart. The pattern formed at the 50% Fibonacci retracement of the previous rally from 16,300 to 19,600.

Nifty Private Bank Daily Chart

 

The momentum indicator Stochastic is turning bullish in oversold territory is supporting the reversal structure.

On PSU Bank Index, the probable Morning Star bullish reversal candlestick pattern is visible on charts.

Nifty PSU Bank Daily Chart

 

The bullish reversal candle is forming at the 100 DEMA. Stochastic is in oversold territory and the slope may turn northwards signaling a bullish tone.

The bullish reversal on Private as well as PSU Bank index indicates a bullish scenario for the May series.

At present, the Bank Nifty index is trading up 1.1% at 36,500. From the index, SBI, IndusInd Bank, and RBL 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.

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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