Bank Nifty Write Up : the Bank Nifty began the day with a strong opening and extended its gains in the initial hours Says Mr. Rajesh Bhosale, Angel One
Below The Quote on "Bank Nifty Write Up" by Mr. Rajesh Bhosale, Technical Analyst at Angel One Ltd
Following the positive momentum from the previous session, the Bank Nifty began the day with a strong opening and extended its gains in the initial hours, approaching the 45000 mark. However, as 45000 is seen as a psychological level on the expiry day, prices started to gradually decline for the rest of the day, giving up the morning gains. Eventually, prices ended the session flat tad below the 44500 level.
While there hasn't been a significant shift in prices, the session was disappointing for the bulls, given the promising start they had in the morning. Despite this, the weekly gains are still being held onto, and the focus will now be on the development on the last day of the week. If today's price movement is interpreted as part of the expiry adjustment and if prices resume their upward trajectory tomorrow, the bulls could have a strong position entering the monthly expiry week. However, if weakness persists, the market may continue to experience the recent range-bound behavior, particularly for this prominent heavyweight. Considering the RSI smoothened buy signal within the oversold zone, a strategic approach would involve considering long positions during price dips. In this scenario, the support levels at 44200, followed by the 89EMA around 44000, are expected to hold firm. On the contrary, the resistance at 45000 has proven to be a significant hurdle throughout the month of August, and any substantial momentum movement will only occur when prices achieve a sustained breakout above this level. Stock-specific actions within this sector are displaying strength, and it would be wise to focus on such trades for potential outperformance.
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