bank nifty index The second half of the May series saw an uptrend and outperformed the Nifty 50 index.
So far in June the tide has turned as Nifty has outperformed the Bank Nifty index.
Bank Nifty moved back from high of 36,083 high to 35,000 level to re-test several technical patterns.
As things stand now, the charts are suggesting that there is an opportunity for the bulls in the 34,700-35,000 area.
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An inverted head and shoulders (iH&S) breakout appears on the short-term chart at 34,800 after reversing from the bullish harmonic at 33,200.
The IH&S retest is an opportunity for the bulls to offer the best risk-reward trade setups.
Additionally, the gap area of 34,800-35,130 will add a layer of support for the bulls.
Stochastic, the momentum indicator, has slipped into the oversold zone, which is indicating a recent downside move below 36,000-34,800.
Bulls should take advantage of this opportunity as an area of 34,700-35,000 will act as a demand zone.
bank nifty index Reversing the initial gains, today closed 0.3% lower at 34,900 level.
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Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.
(This article is syndicated from) equitymaster.com,