Three banking stocks among Narnolia's 5 picks that can return up to 19%

Near-term resistance is at 5-day moving average at 10,792. On the other hand, support will continue near 50-day moving average at 10,646 and only a decisive close below this strong moving average will attract fresh selling, says Shabbir Kayyumi of Narnolia Financial Advisors.


The market is trading range bound between 100-day moving average placed at 10,900 and 50-day moving average at 10,646. Nifty has traded between these two important moving averages for the last 26 trading sessions.

Nifty, on January 4, formed a white body pin bar candle, indicating a very short-term bottom was placed. However, it needs further confirmation.

Near-term resistance is at 5-day moving average at 10,792. On the other hand, support will continue near 50-day moving average at 10,646 and only a decisive close below this strong moving average will attract fresh selling.

DX indicator is trading lower around 16 signifying rangebound movement. Addition of almost 1 lakh open interest in Nifty Futures on January 4 suggests long buildup. Also Nifty January future is trading above its volume-weighted average price (VWAP) of 10,745.

On the options front, maximum Open Interest (OI) in Call at 11,000 and maximum OI in Put is at 10,500 suggesting immediate trading of 10,500 and 11,000.

Bank Nifty

Banking index is trading in rising wedge pattern having lower side support around 26,950 and upper trend line resistance placed near 27,500. Since Bank Nifty is trading above major moving averages, its short-term and mid-term trend is positive and immediate trading range is 27,500-26,950.

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