Bank Nifty

The Index broke its 200 DMA during recent past and posted swing low of 17376. The bears could not hold the Index below its 200 DMA and gradually it started its upward journey. As per Fibonacci Retracement the Index has managed to close just above its Golden Ratio. Besides it has also captured its short term moving averages on a closing basis which is a bullish sign. On a daily chart it seems that the Index has formed a Falling Wedge chart pattern which indicating the continuation of northward journey.

 As long as the Index trades above its Golden Ratio placed around 18650 levels the view remains bullish. On the other failing to hold 18650 on a closing basis we may see selling pressure.

Resistance 19100-19500 whereas support at 18400-18150

We have RBI Monetary Policy review on 2nd June, 2015 which is expected to set the further tone for the Index and broader markets. 

CNX Metal

Metal Stocks to Shine?

 

The Index has been quite under performer. However the index found support around 2280 mark and started steady recovery. During recent past the Index captured its short term moving averages but it found resistance around 2515 levels and failed to capitalize the move. However today the Index formed a strong bullish candle on a daily chart and bulls managed to capture 20 & 50 DMA. Again today the index knocked at 2515 but missed to give close above the same. With other technical indicators turning bullish it seems that earlier fall might be shake out and metal stocks may continue to shine in near future.   

Consecutive close above 2515 + weekly close above the said mark may take the index to kiss 2690-2730 levels. The strategy that investors can adopt is to buy metal stocks on dips as long as 2400 level is not breached on a closing basis.

Bank Nifty 252015

During recent past the Index has quite out performed Nifty Darling. Nifty lost its 200 DMA, but on the other hand Bank Nifty has managed to hold its 200 DMA.

Last Close @ 18338

The Index found resistance around its 20 DMA , however closed above 5 & 10 EMA

Immediate Support at 18200. Above 18200 rally up to 18450-18500 can't be ruled out.

Don't remain short above 18500

If sustains above 18500 the index may fire to kiss 18700-18800 levels

Below 18200 bears will have upper hand and the Index may move to 17800-17700 levels.