Daily Timeframe: The banking sector has shifted into consolidation during this week and moved within a narrow band. Thursday’s session saw choppy trend with positive bias in the banking sector.
- Presently, the sector has been moving in a positive sequence of higher tops and bottoms over the last couple of months. Currently, the sector is moving in a sideways consolidation phase and previous such consolidations have been resulted in an upside breakouts (uptrend continuation pattern).
- The sector participants like SBIN, ICICI Bank, Axis Bank, IndusInd Bank, Can Bank, BOB and Fed Bank are all now moving in a sideways trend with positive bias.
Weekly timeframe: After moving into consolidation during last week, the banking sector has shifted into minor positive trend during this week and closed the week higher by around 255 points as per w-o-w basis.
- The higher high formation continued in banking sector as per weekly timeframe and still there is no signs of any reversal pattern in this sector at the new highs (21787-this week).
- Weekly 14 period RSI has placed at the bullish area of 70 and the RSI is still sloping up. This is suggesting that the strength of upside momentum is still intact.
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The underlying trend of Banking sector as per smaller and larger timeframe is still positive and placed at the supports. As long as the trend remains positive, one may continue to maintain or create fresh long positions in Banking sector/sector participants. Next upside levels to be watched is around 22000/22300 levels, in the next 1-2 weeks.