Published on: April 5, 2024
In the wake of the Reserve Bank of India’s monetary policy decision to maintain its repo rate at 6.75%, accompanied by optimistic remarks from Governor Shaktikanta Das, investors are contemplating whether Bank Nifty could soar to the 50,000 mark.
As an investor with a penchant for technical analysis, I lean towards chart patterns to form my perspective.
Bank Nifty Weekly Chart
Source: TradePoint
Analysing the Bank Nifty weekly chart, the index has broken out of a symmetrical triangle pattern following a three-month consolidation period. This breakout signifies a resumption of the bullish trend, hinting at potentially lucrative opportunities for investors.
Furthermore, the index has reversed from the 62-week Moving Average channel regarding its high and low points. This reversal, coupled with the upward momentum witnessed within the channel, affirms the bullish trajectory. The breakout from the symmetrical triangle pattern further reinforces the likelihood of continued upward movement.
A key player in this scenario is HDFC Bank, which has been spearheading the markets and commands the highest weightage in the Bank Nifty index. With a weightage of 27%, HDFC Bank’s performance can significantly influence the trajectory of the index. Did you read the view on HDFCBANK? Click here
A closer analysis of the trend and candlestick patterns on the weekly charts of Bank Nifty constituents sheds light on the broader trend.
Source: RZone
Most stocks within the Bank Nifty exhibit a positive bias in their trends, indicating favourable conditions for further upside potential. Nonetheless, it’s worth noting that some stocks are currently experiencing consolidation phases, as evidenced by their placement within the NR4 and NR7 zones.
In conclusion, the confluence of factors, including the breakout from the symmetrical triangle pattern, the reversal from the Moving Average channel, and the positive bias observed in most Bank Nifty constituents, paints a bullish picture for the index. While HDFC Bank’s performance remains pivotal, the broader trend suggests that Bank Nifty may be on course to reach the coveted 50,000 mark.
