Once again, BankNifty escorts our markets to historical highs: Angel Broking

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

The Nifty Bank index rallied sharply today and closed at a record high to mark the continuation of uptrend. The index posted gains of 2.90 percent over its previous session's close.

In last fifteen trading sessions, the Nifty Bank index had consolidated in a narrow range of 22450 - 22980. If we look at the broader trend, this corrective move just seemed to be a time-wise correction and usually, such time-corrections (instead of price corrections) are seen when the index is in a firm uptrend.

Also, in the entire upmove in this calendar year, the '20 DEMA' in the Nifty Bank index has acted as a strong support during the corrective moves. The lower end of the above-mentioned consolidation phase also coincides with the '20 DEMA' which has again acted as a savior for the bulls. Going ahead, we are expecting a continuation of this uptrend and we expect the index to move higher up to 23550 - 23650 in near term. Traders with existing long positions can now trail their stop-losses to 22450 and trade with positive bias.

Source : Equity Bulls

Keywords