Bank Nifty future closed the week at 18764.15 after opening for the day at 18525. The low for day made 18478. week on week it’s the third weekly positive closing for bank nifty in the month of May 2015.
Positives.
BankNifty is above its 50 & 200 SMA’s and is sustaining at higher levels. The 14 day RSI remained well above 40 levels and now closed the week at 58.10 with upside momentum which indicates the upside bullish trend continuation signal.
The stochastic indicator has just entered the over bought zone hence we can see a short-term correction going forward.
Negatives.
The volume has been thin this past series and despite the bank nifty is up 1300 points from lows there is lack of conviction in going long between market participants.
Banknifty strong supports are 18240 and 17950 and on upside the resistance at 19110 19450. Short term trend is positive and market is a resistance zone once breakout the same shall run for 19500-20000 in coming sessions. one can buy the dips with protective stops for june series.
Stock specific axis bank, yes bank, kotak bank, hdfc bank are bullish whereas bank of india, punjab national bank and canara bank are weak.
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