BankNifty poised for higher move

The renewed momentum clearly pulls Nifty and other broader indices higher as Nifty maintains positive bias on closing bases. BankNifty adding gains and closing higher after breaking its September highs also aided to current gains. The momentum persist and that is what we are seeing with recent dips being bought and will continue to remain, as shared with readers, the range is shifted on higher side with now lower levels support placed at 17,700 – 17,650 while on higher side a technical short term target is placed at 18,180 – 18,220 levels.

BankNifty we believe is now poised for higher move and with a fresh breakout we believe if it sustains the 37,800 – 37,700, it can see an upside move towards 38,900 – 39,200. We want to draw attention towards our CNX PSU Bank which is now at its highest levels since 2020 and continues to gain traction, as previously shared. Stocks from this space such as SBI, Canara and Bank of Baroda will remain in traction.

Also, With BankNifty gaining some of the private banks will also see traction. CNX Auto is also in our focus and stocks such as Tata Motors, Maruti, and Amara Raja are in focus. A renewed buying is seen in FMCG but we would further require weight of evidence.

Global cues have been largely mixed in the past few weeks and the major global indices also remain in sideways short term correction while Indian equity markets continue to lead. Crude oil moving past the $80 mark is another factor that is critical. It is imperative that one maintain risk management very objective at present and play along with momentum with a bit conservative approach.

(The author is Technical Analyst, Finversify)