Finally Nifty bank gave up and declined by 3.59% or 813.3 points. RBI Governor’s statements at CII conference, ICICI Bank results impact, HDFC Bank insider selling etc. were triggers among many.
Nifty Bank has closed below a crucial level of 22000. The next important support zone is 21350-21030 where its 100 Day MA is also placed. Nifty Bank is slightly oversold and buying in these support zone can provide a nice pullback up to recent highs.
I have been writing for many days that the Nifty Bank & Nifty 50 both are significantly diverging and are overbought at important resistance levels.
But the surprising thing is Nifty 50 is not giving up and trapped in a tight range of 11240-11050 for the last four days. Today, Nifty went down up to yesterday’s low and reversed some losses to close at 11131.8.
Nifty will eventually give up and likely fall upto its 200 DMA at 10862.
But as long it remains above the rising trend line, the line of least resistance is up!
Here’s the watchlist of the most oversold stocks based on My Swing Trading Strategy. One can look to entre these stocks on intraday correction of 2-3%.
Have a profitable day!