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NIFTY PSU BANK : 2796.45 weekly change (6.18%)

Observation

* NIFTY PSU Bank can be seen moving higher after correction about 17% off from its recent high of 3054 which has created in November 2021.

* On the weekly chart we witnessed that the prices have found support at 2529. This level happens to be a support cluster as it represents 20 Week SMA, a CIP level and the upper trend line of the Triangle that the prices broke above on 11th October 2021.

* The RSI plotted on the weekly time frame can be seen moving higher as the prices form a higher high higher low pattern since May 2020. Currently it can be seen forming a bullish hinge near the 60 mark and moving higher towards the over bought level, indicating increasing bullish momentum in the prices.

* Going ahead the 3054 (Recent swing high) will act as a make or break level. If the prices breach above this level, we might see the prices move higher towards the 3430 mark (Multiple touch point level) .

* The 2529 (Weekly low) will be a red flag level for the index. If the prices managed to breach this level, we might see further downside and the index might correct deeper.

Inference & Expectations

* The NIFTY PSU BANK has formed a higher high higher low pattern after bouncing off a strong support level.

* The price action on short and the medium term charts suggests that a bottom might be in placed and we are moving higher after testing a support cluster.

* The prices action and the technical parameters mentioned above point towards the possibility of increasing bullish momentum in the prices.

* Going ahead we expect the prices to head towards the 3054 mark, if the prices breach above the 3054 mark, we might see the prices move higher towards the 3430 level.

* The RED FLAG level to watch for the index in the sessions to come is weekly low of 2529, if the prices breach below this level our bullish view is negated and we might see the prices correct even deeper.

NIFTY MEDIA: 2473 weekly change (9.13%)

Observation

* Nifty MEDIA can be seen moving higher after a shallow correction of 23.6% retracement of the previous up move from 1569-2378.

* On the weekly time frame we witnessed that the prices found support at 2145 which is placed close the upper trend line of the upward slopping channel pattern and the multiple touch point level of 2130 post which the prices breached above the November 2021 high of 2378 mark which shows positive undertone of the sector.

* On the indicator front, the RSI plotted on the weekly time frame is placed above the 50 mark and is currently moving higher towards the overbought level, indicating increasing bullish momentum in the prices.

* Going ahead 2612-2645 (Multiple touch point level and also the 61.8% extension level of the rise from 1569-2378 projected from 2145) is expected to act as a resistance level, if the prices breach above this level, we might see the prices move higher and test the 2781 (78.6% extension level of the rise from 1569-2378 projected from 2145) and eventually move towards the 2954 (100% extension level of the rise from 1569-2378 projected from 2145).

* Going ahead the 2239-2145 (Weekly low and the previous week low) is going to act as a support level. If the prices breach below the 2145 mark then the positive set up of the sector would be negated.

Inference & Expectations

* NIFTY MEIDA has retested the upward slopping channel pattern that has been in formation for about an year, indicating that the long term trend of the index remains bullish.

* On the medium term charts we can see that the prices have sustained near its 52 week high of 2478 which shows positive sentiment of the sector.

* We expect this up move to take prices higher towards the 2619-2645 zone. If the price breach above this level we might see the prices move higher towards 2781 and 2954 mark.

* The above analysis will stand negated if the prices breach and sustain below the 2145 mark.

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