Banking on Bank Nifty

JC Parets
September 19, 2021

Nifty 50 has been making new highs, moving past the early 2021 high in May and continuing to rise further. That's well and good. But if these new highs aren't coming through in Banks and Financials, then that's an issue.

Financial stocks make up 37.58% of Nifty 50. So it's safe to say that Nifty50 can't get very far for too long without the cooperation of Bank Nifty and Financial Services.

We had recently written about new highs in the Financial Services sector. But this halted at the same point. For this space to move higher, the banks had to fall behind Finserv.

We got what we were asking for. Sort of. We still have to wait for a follow-through.

But in the week gone by, we did see a breakout on Bank Nifty. Between the two indices Nifty 50 has been the leading index. What we were waiting for was to see if we got some confirmation on Bank Nifty. And we have a sign!

Click on the chart to zoom in.

The price finally broke out above its early 2021 highs and is now trading above the level of 36,530. With this move, the next target we're tracking is 45,180. Of course, this is over the next few weeks and months. We are also yet to see the follow-through of this breakout. But this move is definitely a good sign for the overall market.

Are we out of the Bank Nifty mess?

We'll have to find out!

Are you invested in the banking space? Have you been waiting for a breakout?

Leave us a message, we’d be happy to hear from you!

Allstarcharts Team

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