Bank Nifty Outlook for Tuesday, 14th July | 50x Investments

13 lug 2020

Bank Nifty Technical Analysis:

• Bank Nifty broke the lower trend line of an almost 20-day long rising wedge pattern.
  
• The bears were clearly in control of the market, bringing the index down by 1.38%.
  
• 22000, which is the 50% Fibonacci Retracement level, acted as a strong support.
  

Bank Nifty Driving Factors:

• Yes Bank FPO failed to excite market participants despite the deeply discounted offer price.
  
• Most banks and NBFCs ended up deep in the red due to concerns of rising NPAs because of the moratorium
  

Bank Nifty Outlook for Tuesday, 14th July:

• The downward breakout of the wedge seen today was not supported by high volumes and hence a pullback might be seen tomorrow in the form of a gap-up opening.
  
• However, the hourly trend tomorrow post open is likely to be bearish with 21738, the 61.8% retracement level, acting as a strong support.
  
• Earnings expectations will start to reflect in the index as most banks are expected to report Q1 FY21 earnings within the next 2 weeks.