Those trading in Bank Nifty should get ready, prepare for big breakout next week, these stocks will lead
Mumbai/Sources: There is a bullish atmosphere in the stock market and on Friday, Bank Nifty showed good upmove and closed above its important resistance level, which seems that Bank Nifty has now become stronger.
Traders in Bank Nifty will be very happy with Friday’s price action, as Bank Nifty closed above the level of 46200, which is its important resistance level. Bank Nifty showed a good upmove and closed at the level of 46385 on Friday.
On Friday, Nifty crossed the important resistance level of 46200 and Bank Nifty closed at the level of 46385 and is preparing for a big breakout.
Break out in Bank Nifty
If you look at the daily chart of Bank Nifty, you will find that you can see two types of breakouts here. One is the breakout of the W pattern. If we look at the daily chart of Bank Nifty, this W pattern started from the candle of January 17. Bank Nifty took support from the lower levels from the candle of January 25, which is the level of 44500. From here, Bank Nifty showed an up move and then a candle was formed on 5 February which took Bank Nifty beyond the level of 46800.
After that, there is another downwards candle on 12th February which closed at the level of 44600. From here Nifty again took support and once again it is moving forward.
In this way, in the price action from January 17 to February 16, Bank Nifty has formed a W pattern on the daily time frame and has also closed above this pattern. The level of the neck line of this pattern is 46250. This will be an immediate support for Bank Nifty in the coming days.
Trendline break out
Trend line break out has also occurred in Bank Nifty. On the daily chart, if we draw a trend line from the wick upwards from the candle of 16th January, then it will go down touching the wick formed on 2nd February. All the touches of this trend line were important resistance levels of Bank Nifty, but now Bank Nifty has closed above this trend line. The previous resistance level of this trend line was 46050 which was breached by Bank Nifty with huge volume.
These stocks will take Bank Nifty forward
This breakout has taken place in Bank Nifty and now it will be taken forward by stocks like HDFC Bank, ICICI Bank, Axis Bank, SBI Bank and IndusInd Bank. All these banking stocks were in their rhythm in Friday’s market. Although Axis Bank stock was slightly down in the market on Friday, but it is above its support level and may go further higher.
HDFC Bank also hit a high of Rs 1428 on Friday. This stock can show good progress in future also. If the breakout of Bank Nifty is sustained next week, then we may see the level of 46885 and later the level of 47190. After this, the next stop of Bank Nifty can be the level of 47750.
