Nifty 50 may test 22,700, Bank Nifty likely to see 48,000 in short term: SBI Sec
Technical charts show that during this phase, the Nifty 50 index is forming an Ascending Triangle pattern on a daily scale.
This pattern typically indicates a bullish sentiment, suggesting that despite the temporary pause, the market sentiment remains optimistic, SBI Securities said in a report.
Going ahead, the index is on the verge of an Ascending Triangle pattern breakout.
“Any sustainable move above the level of 22,150 – 22,200 will lead to a sharp upside rally in the index. In that case, the index is likely to test the level of 22,500, followed by 22,700 as per the measure rule of Ascending Triangle pattern,” SBI Securities said.
While, on the downside, the 20-day EMA (Exponential Moving Average) is likely to provide cushion in case of any immediate decline, which is currently placed at 21,784 level.
The brokerage advises to look for stock-specific opportunities in Auto, Pharma, Banking, IT, and Oil & Gas space.
Meanwhile, the Bank Nifty seems to have found stability around the 200-day EMA level after underperforming the frontline indices in recent months.
Subsequently, the index has exhibited the formation of a Symmetrical Triangle pattern on the daily scale and is currently on the verge of Triangle breakout on daily scale.
“Any sustainable move above the 50 DMA (day moving average) level of 46,750 – 46,800 will lead to a sharp upside rally in the index. In that case, the index is likely to test the level of 48,000 in the short-term,” said the SBI Securities report.
While, on the downside, the 10-20 EMA zone of 46,000 – 45,800 is likely to act as immediate support for the index from a short-term perspective, it added.
Nifty Auto
As per the technicals, SBI Securities also believes that the Nifty Auto index is likely to continue its northward journey and test the level of 20,800, followed by 21,250 in the short-term. While, on the flip side, a 20-day EMA placed at 19,512 level is likely to provide the cushion in case of any immediate decline.
Nifty Pharma
Nifty Pharma has been on a consistent upward trend, evidenced by its formation of higher highs and higher lows. Looking ahead, the momentum is expected to persist, with a potential test of the 19,600 level in the short- term. Conversely, the 18,450 – 18,400 zone is anticipated to offer support in case of any immediate downturns, SBI Securities said.
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Published: 20 Feb 2024, 02:31 PM IST
