Bank Nifty ends its three-week losing streak; can bulls capitalise on the positive move of last week?!

Bank Nifty jumped 2.7 per cent last week and formed an inside bar on the weekly timeframe.  

Bank Nifty jumped 2.7 per cent last week and formed an inside bar on the weekly timeframe.  

With this, the index snapped its three-week losing streak after a correction of nearly 8 per cent. It almost tested the high of June 13, which is the downside gap day’s high. The 21-EMA is placed at 33,839, which may act as immediate resistance. The 20-DMA is at a distance of 1.61 per cent while the 50-DMA is 3.31 per cent away. 

Meanwhile, the Anchored VWAP resistance is at 33,908. The index has to clear this resistance for reversal. The gap resistance is at 34,346, which could be the maximum pullback level for the rally. The RSI, at 45, is in a neutral zone. A move above 50 will strengthen the bulls. Be with a positive bias for the time being and avoid aggressive shorting. 

Bank Nifty may open positive. After an hour, if it trades above 33,840, it’s a positive sign that may test 34,340. In that case, the level of 33,655 is likely to offer support. However, a move below 33,555 is negative, and it can test 33,300.