The festive season has begun for the bulls on Dalal Street.
The benchmark NSE Nifty and the Bank Nifty index reclaimed 17,500 and 40,000 levels, respectively.
As we highlighted yesterday, the Bank Nifty broke out from the ascending triangle pattern at 39,685. The index has risen over 600 points within a few hours of trading to reach 40,300 levels.
PSU Bank Index to follow the Bank Nifty
Technically, the PSU Bank index reversed from the demand zone and broke out from the short-term hurdle.
A couple of points to take note...
The multiple breakouts and reversal signals bullish momentum.
Any dip to retest the breakout level should be an opportunity for a low risk - high reward trade entry.
From the low of 2,283 in June 2022, the PSU Bank index has rallied close to 40%. It's also the best performing sectorial index. Hence, the retracement and breakout indicates the resumption of the long-term trend.
At present, the PSU Bank index is trading up 2.3% at 3,120 levels.
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.
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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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