After some pullback, the banking index has outperformed and is continuing its ascent. Axis Bank is the strongest private sector bank, with a breakthrough above its prior swing high resistance.

After approaching the 18,900 mark in early December, traders appear to have favored profit-taking, and therefore the Nifty50 is trapped in a bear trap. After gaining more than 1% in the previous two weeks, the index fell more than 1% in the week ended December 9. Despite a fall in oil prices due to global recession worries, the Reserve Bank of India’s slightly hawkish tone and caution ahead of the FOMC meeting impacted on market mood.

The index finished just below 18,500, the support level it had been holding for many days. Overall, if the same is clearly broken, Nifty can find support around the critical 18,400-18,300 level, while the 18,600-18,700 zone will be tested.

“The Nifty is currently barely above the ’20-day EMA’ (exponential moving average – 18,465), which corresponds to the last swing high of 18,450. As a result, we remain optimistic as long as the 18,400 – 18,300 range is not breached on a closing basis “Angel One’s Chief Analyst-Technical and Derivatives, Sameet Chavan, stated.

Until then, he believes that every intermediate fall should be seen as profit-taking before resuming the rising trend.

On the other hand, the levels to watch for are 18,650 – 18,700. When the Nifty crosses this level, analyst predicts that it will reach another high of 19,000 in the near future.

Traders should avoid getting carried away by such little falls. Instead, Sameet suggests concentrating on thematic motions, particularly those from the wide end of the spectrum.

The stock is nearing the end of a corrective trend. It might fall below Rs 1,950 or Rs 1,960, where it has had significant support since March 2022.

It will technically be the second low in the previous two months. Our recommendation is to purchase 50% of the stock at present levels and the remaining 50% at Rs 1,950, with a final stop-loss of Rs 1,875 and a medium-term goal of Rs 2,350 or Rs 2,450, which is the company’s pullback level.

It is consolidating in a triangular pattern between Rs 1,640 and Rs 1,590. It has displayed a trending move since Rs 1,365.

The overall formation suggests that the current formation is a continuation formation and that if Rs 1,642 is dismissed, it will climb to the level between Rs 1,675 and Rs 1,722.

Buying between Rs 1,630 and Rs 1,620 is recommended, with a stop-loss of Rs 1,590.