IGI Logo

NIFTY PVT BANKS : 19113.55 weekly change (5.94%)

Observation

* On the weekly time frame we can see that the NIFTY PVT BANKS seems to have found support near the 17200 mark and halted its correction that started in the month of October 2021.

* In the week started 27th December 2021 the prices formed a bullish engulfing candle and engulfed the prior week bearish candle. This week the prices continued to move higher and tested the 20 Week SMA (19259).

* The RSI plotted on the weekly time frame formed a bullish hinge near the 40 mark and is currently placed above the 50 level and moving higher, indicating increasing bullish momentum in the prices.

* Going ahead the 20 Week SMA is going to act as make or break level, if the prices manage to breach above the 20 Week SMA, we might see the prices move higher and test the 20128 (Multiple touch point level) post which we might see the prices move higher towards the 21719 (Life Time high)

* The 18044 (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

* From the long term perspective the NIFTY PVT BANK remains to be strongly bullish. On the shorter time frame we can see that the prices are moving higher after a correction.

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

* Going ahead we expect the prices to head towards the 20128 mark, if the prices breach above the 20128 mark, we might see the prices move higher towards the 21719 level.

* The RED FLAG level to watch for the index in the sessions to come is weekly low of 18044, if the prices breach below this level our bullish view is negated and we might see the prices correct even lower.

NIFTY INFRA: 5090.70 weekly change (2.84%)

Observation

* Nifty INFRA entered in to a corrective phase after testing the high of 5362 in the month of November 2021. This correction was shallow and the prices took support near the 4700 mark. 

* The moment the prices tested the 4700 mark the index witnessed a sharp bounce and the index formed a ‘V’ shaped recovery. In the week that passed by the prices also successfully managed to close and sustain above the 20 Week SMA (5018).

* On the indicator front, the RSI plotted on the weekly time frame managed to remain above the 50 mark during this entire correction. Currently it can be seen moving higher after forming a bullish hinge near the 50 mark, indicating increasing bullish momentum in the prices.

* Going ahead we expect the prices to moving higher and test the 52 week high of 5362, if the prices managed to sustain above this level we might see a further up move towards 5602 and 5850 (61..8% and 78.6% extension level of the up move from 3890-5362 projected from 4692)

* The weekly low of 4955 will act as a strong support level for the short to medium term.

Inference & Expectations

* NIFTY INFRA on the medium term charts can be seen moving higher after forming a V-shaped recovery.

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

* We expect this bullish momentum to take the prices higher towards the 5362 mark, if the prices breach above the 5362 mark we might see the prices move higher towards the 5602-5850 levels.

* The above analysis will stand negated if the prices breach and sustain above the 4955 level.

To Read Complete Report & Disclaimer Click Here

To Know More Details Visit GEPL Capital

SEBI Registration number is INH000000081.

Please refer disclaimer at https://geplcapital.com/term-disclaimer

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer