Daily Timeframe: The banking sector has witnessed an excellent upmove during this week and closed the week near the high.
- The immediate resistance of down sloping trend line (green dashed line connecting previous swing highs) has been broken on the upside around 19970 levels yesterday and the sector closed above it.
- The sector participants like Axis Bank, ICICI Bank, Kotak Bank, SBIN, Yes Bank and PSU Banks like Can Bank, BOB, BOI, Vijaya Bank, Fed Bank, Syndicate Bank, Andhra Bank, PNB and ALBK are all in a sharp up trended move.
Weekly timeframe: After showing sharp upmove during last week, the banking sector continued this week with sharp follow through upmove and closed the week with gains of around 488 points, as per w-o-w basis.
- The banking sector is now approaching the immediate resistance of down trend line (blue dashed line of larger degreeconnecting previous important tops) around 20500 levels. After possibly showing minor setback around this hurdle the banking sector is expected to break above it in coming weeks.
- Weekly momentum oscillator like 14 period RSI has turned up and moved above 60 levels. If the weekly RSI sustains/moves above this 60 levels in the next 1-2 weeks, then one may expect strengthening of upside momentum in the sector.
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- The underlying trend of Banking sector is positive and more upside is likely come for the next 1-2 weeks. Next upside levels to be watched is around 20500-600 and immediate support is now placed at 19950 levels. One may look to buy Banking sector/participants at the current market and also look to add on dips.