Chartist Talks: Nifty may touch 25500 levels soon, Sign of Breakout in Bank Nifty too – Chartist Talks Bank Nifty is expected to breakout only only will also see a strongeep shah of Sbi SBI SECURITIESEs

Sudeep Shah of SBI Securities In an interview with Moneycontrol, the current chart structure suggests that the Nifty will maintain its boom in the coming sessions. They believe that the bank will perform better in the Nifty short term. This index is getting closer to the breakout from its month -long consolidation. Legendary banking stocks are also getting closer to their breakout levels. With this, the bank Nifty can get a strong booster. Sudeep Shah is the deputy vice president and head of technical and derivative research in SBI Securities.

Do you think the Nifty will cross its recent swing high 25,116 at the upcoming F&O Expiry Week?

In response, Sudeep Shah said that in the growing market, there is no 20 -day EMA no floor – it is a springboard. Recently, the movement in prices proves this to be completely correct. After a sharp boom in the last week, the benchmark index is shown to breathe the Nifty rage. There is a healthy correction in the index. This pullback received support with 20-Day EMA. This was followed by a good comeback. This has clearly seen the role of 20-Day EMA in the ongoing uptrend as an important springboard.

The special thing is that this behavior was not isolated. Most of the frontline index was also seen jumping with its 20-Day EMA. Which shows that there is still a boom in the broad market. As long as the Nifty is trading above this important support, the trend of fast will remain. In such a situation, any correction should be seen as an opportunity to purchase rather than a sign of weakness.

The current chart structure of the Nifty suggests that the Nifty will continue to rise in the coming sessions. The bank can emerge as an outperformer in the Nifty short term, as it is getting closer to the breakout from its month -long concerted era. Strengthening this perspective, heavyweight banking stocks are also close to brakeout levels. With this, the bank Nifty can get a strong booster.

Immediate support is visible in a zone of 24,950-25,000 for Nifty. Sudeep Shah said that if there is a decisive closing of above 25,000, the short term can see a level of 25,300 in the Nifty. On going beyond this, the way for the Nifty towards 25,500 further can open the way. At the same time, 20-day EMA or 24,550–24,500 is supported in the zone for Nifty at the bottom. The decline in Nifty may increase due to breakdown of this support.

Do you expect a strong breakout from a month -long consolidation in Bank Nifty in the coming week?

Sudeep said that yes, we expect a possible breakout from our month -long consolidation in the bank Nifty in the next few business sessions. On Thursday, the Bank Nifty got support with its 20-Day EMA and since then it started gaining momentum. Daily RSI is moving towards the level of 60 and it continues to increase. It strengthens the speed of fast.

In addition, the bank Nifty vs. Nifty ratio chart has jumped from its 50-day EMA, a sign of the banking index being comparatively strong. This indicates that the bank may perform better than the Nifty Boddar Market.

Within the Bank Nifty Index, giants like HDFC Bank, ICICI Bank and Axis Bank are also giving good indications. All these are on the verge of getting out of their consolidation pattern on the daily chart. With this, the bank Nifty can get a strong booster.

The zone of 55,700-55,800 has an important resistance for bank Nifty. Any strong trick above the level of 55,800 will lead the bank Nifty to a level of 56,500. After this, it can see a rise of up to 57,200 in the short term. While at the bottom, the 20-Day EMA of 54,800–54,700 can serve as a large support for the zone index.

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