Nifty Pvt Bank forms bullish candle ahead of exit polls

Investors remained cautious ahead of the state election exit poll results to be announced immediately after voting in Rajasthan and Telangana on Friday evening. Nifty Pvt Bank was the top gainer on Friday among all sectoral indices ahead of exit polls, closing at 15062.25 with a gain of 2.11 per cent. After opening with an upside gap, the index managed to make series of higher highs throughout the day. Among private banks, Kotak Mahindra Bank was the biggest outperformer, while Federal Bank and Yes Bank were the underperformers. 

On the daily time frame, after taking support near the crucial long term moving average, i.e. 200-day exponential moving average, the index formed a sizeable bullish candle. The 14-period day RSI is quoting around 57.87 and it is in a rising mode, which suggests upward momentum in the coming days. 

On the upside, for the short term, the index is likely to face resistance around 15070-15300 levels. However, a close below its crucial long term moving average, i.e. 200-day exponential moving average, will be the first sign of weakness.