"Our anticipation for Bank Nifty is to reach the 51,000-51,200 zone within the next 10 to 12 sessions is based on the observation of a Bearish Deep Crab pattern forming within this specified range," Jigar S Patel, Senior Manager - Equity Research at Anand Rathi told Moneycontrol in an interview.
This pattern suggests that despite the upward momentum leading Bank Nifty towards the mentioned zone, there could be a potential reversal once this area is reached, he feels.
Jigar, who has more than nine years of experience in technical research, believes the alignment of technical indicators paints a compelling picture of the market's readiness for a fresh bull run in the Nifty FMCG index, contingent upon overcoming the immediate hurdle at the 55,000 mark.
Do you expect the Nifty 50 to easily surpass 23,000-mark soon, considering the ongoing optimism?
It seems highly probable that the Nifty 50 could surpass the 23,000 mark, with particular interest lying in how the index behaves near its all-time high (ATH). Notably, the ATH marks the upper boundary of the ascending channel depicted in the chart, within which the Nifty is currently trading. This pattern suggests a bullish momentum, with a potential target range between 22,750 and 22,800.
Moreover, the long-short ratio of foreign institutional investors (FIIs) stands at approximately 35 percent, indicating limited downside potential. Looking ahead, the Nifty faces immediate resistance levels at 22,700-22,800, and a decisive close above this range could stimulate renewed interest in index futures.
Conversely, breaching the support level at 22,300 might escalate selling pressure in the markets.
Do you think the Bank Nifty is expected to see correction after hitting the much-awaited 50,000 mark?
Our anticipation for Bank Nifty is to reach the 51,000-51,200 zone within the next 10 to 12 sessions is based on the observation of a Bearish Deep Crab pattern forming within this specified range. A Bearish Deep Crab pattern typically signifies a potential reversal in the Bank Nifty, indicating that the price may decline following its completion. This pattern suggests that despite the upward momentum leading Bank Nifty towards the mentioned zone, there could be a potential reversal once this area is reached.
Consequently, it's likely that we may witness a pullback in the Bank Nifty's price trajectory after it hits the 51,000 level.
Is the Nifty FMCG index making itself ready for a new leg of up move in coming weeks?
The current market conditions are primed for a new upward movement, with all indicators pointing towards the potential for a fresh leg in the market. The only immediate obstacle in this path is the 55,000 level, which needs to be surpassed on a daily closing basis to initiate the anticipated bullish trend.
A crucial aspect supporting this outlook is the presence of a Double Bottom structure on the chart, coupled with a bullish divergence observed on the stochastic indicator on a daily timeframe. This combination indicates a strong potential for an upward price movement and suggests an opportune moment for investors.
Furthermore, reinforcing our bullish stance is the identification of a bear trendline within the FMCG index, which serves as additional confirmation of the positive market sentiment. Overall, the alignment of these technical indicators paints a compelling picture of the market's readiness for a fresh bull run, contingent upon overcoming the immediate hurdle at the 55,000 mark.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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