Banknifty chart at Mid-Channel Support (Educational Post)The daily chart of Banknifty is looking nicely poised for a recovery if Mid-channel support line is held effectively. Mid Channel support right now is at 45700. Exactly where Bank Nifty closed today when I am writing this. If the mid channel support is broken we can see a further fall of Bank Nifty to 45469 or 44886 levels. In case the mid channel support works well the resistance on the upper side will be at 46544 (Mother line based on my Mother, Father and Small child story), 47271, 47906 and finally 48959.
Below par result of HDFC Bank was the main reason for the fall of Banknifty. The merger of two giants HDFC and HDFC Bank is putting pressure on the profit margins of the bank and top line growth is muted due to the same. It seems from the result of HDFC Bank that, consolidation of 2 mighty forces will take some time to rebuild the top line. It is a popular opinion that in the next 1 to 4 quarters the merger will stabilize and HDFC Bank should emerge from this saga as a mega force but we will have to see when it actually happens. HDFC Bank still remains a long term investment idea and Portfolio stock for many investors. However Banknifty took a terrible beating for the same reason. Results from other banks if good, can turn the pessimistic ambiance around Banknifty to that of recovery and consolidation. Mid channel line is there to support the same. 200 days EMA or the Father Line (those who know my Mother, Father and small Child story know it) can prove to be vital support for the falling comet. 200 days EMA is currently at 44539. We will have to see how it goes from here.
The main constituents Banknifty are HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank, SBIN, PNB, Bank of Baroda, IDFC First Bank, Bandhan Bank, AU Bank and Federal Bank. All of these banks can be impacted in a small or a big way by the movement of Banknifty. Looking at the chart of Banknifty, individual charts, Fundamentals and Results of all these banks an investor can make his or her investment decisions.
Disclaimer:
Investment in stocks and mutual funds is subject to market risks, please consult your investment advisor before taking financial decisions. The data provided above is for the purpose of analysis and is purely educational in nature. The names of the stocks given in the above article and chart of the company or index is only for analysis. Purpose of this article is educational. Please do not consider this as a recommendation of any sorts.
