The coming weeks may witness upside momentum above 26200 mark

Gayathri Udyawar
/ Categories: Trending, Markets

In the festival week, we have seen narrow momentum in Nifty and Bank Nifty. The narrow range always gives opportunities to buy near the support level and sell near resistance level. In the weekly chart, a 'hanging man' kind of pattern found in Bank Nifty suggested profit-booking near the resistance levels.

In the lower time frame, indicators and oscillators touched overbought levels, while in the larger time frame, this still needs to be confirmed. The 14-period RSI will be at 55 and some minor strength may be witnessed above 60. For the coming weeks, the zone of 25900-26200 will act as important resistance zone, because the previous swing high is 25915, 200-day simple moving average is at 26054 and 25839 will be the 61.8% level of Fibonacci retracement. In the last three sessions, the price was not able to give a close above this retacement level. Till the price is above all short-term moving averages, there will be minor strength.

HDFC Bank and ICICI Bank are outperforming the Bank Nifty since last one month, while Kotak Bank and Indusind Bank are underperforming Bank Nifty.

Above 26200, we may witness an upside momentum. The gap zone of 25500-25400 will act as minor support for the short term. Below 25150, the short term trend will change.

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