Monday 19 November 2018

Bank Nifty Breaks Out From Classic Cup & Handle Pattern

Posted by suhani varma on Monday, November 19, 2018 with No comments

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The overall setup at the current juncture continues to remain positive. However, the Nifty has reached its longterm 200-DEMA resistance of 10,700.

For any upswing, the Nifty has to surpass the 10,700-levels on a closing basis. Post that, we expect the Nifty to rally towards 11,100-levels. On the downside, longs should be protected with a stop loss around 10,350-levels.

Meanwhile, Bank Nifty has already broken out from a classic Cup and Handle pattern and has managed to hold above it. The index continues to build momentum post its breakout above 25,900-levels.

If the momentum prolongs, Bank Nifty is expected to move higher towards a potential target of 26,800. A protective stop loss should be placed around 25,900-levels.

The Nifty FMCG index is showing signs of a consolidation pattern breakout on the daily chart. It has also convincingly surpassed its long-term 200-DEMA which is a positive development.

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