Nifty, Sensex Rebound as Heavyweights Lead Market Recovery
Does the chart of Nifty PSU Bank show buy bets? Let’s find out
Last Updated: 13th December 2022 - 05:34 pm
Nifty PSU Bank has soared over 25% from its prior swing low
The Nifty PSU Bank was among the top performers from last week, along with Nifty Metal. It soared over 25% from its June low of 2283. With this, it trades above all its key moving averages. Recent privatization news of PSU Banks has propelled the index higher. Prime supporter to this rally was SBI, which soared nearly 30% in the past month.
Analyzing the monthly timeframe of the index, the index has shown erratic behavior in the past, and has not shown a clear trend. However, the July month has been magnificent, as it soared over its two-month high. Meanwhile, the weekly timeframe shows good strength in the index as it has risen above its prior swing high and is in continuous uptrend since past three weeks. It has also registered a breakout from its falling trendline. Also, the 14-period weekly RSI (57.58) has surged above its prior swing high and shows strong strength in the index. The MACD has indicated a bullish crossover in the past few weeks. However, on the daily timeframe, the index has faced resistance at higher level of 2935.
The alarming sign here is the momentum oscillators on the daily timeframe have dipped slightly, which indicates that the index is likely to face resistance at higher levels.
Considering the above points, the short-term trend shall be positive if the index closes above 2935 level on daily timeframe. The targets are expected to be at 3050, followed by 3100 for short to medium term. Also, a close watch must be kept on 20-DMA level of 2770, as a fall below this level can induce weakness in the index. It is expected to provide good opportunities for trading in near future. Some index heavyweights like SBI, Bank of Baroda and Canara Bank shall be under traders’ watchlist for some long bets.
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