#8 BankNifty Update: Can Jalan bring Kalyan for Banking sector?
Janal Panel is the appointed committee for reviewing New Banking licenses by RBI. Today just before a hour of writing up this post i received the news that Committee has submitted its report to RBI today after scrutinizing all the 25 applicants. Can Jalan bring Kalyan (Bliss in english) for the banking sector?? Everyone is waiting for this answer since pretty long. Fingers Crossed!! Coming to technicals, our tgt 10760 has been achieved on Banlnifty call initiated at 30th Jan. As we could notice that it has also breached above a uptrend channel as Nifty has but it gave signal a day earlier. Another important trendline which has been breached is the resistance line drawn from the high last year. It has closed above all the short term moving averages and 5 Daily EMA has crossed other short term moving averages from below giving a strong buy call. Now there are two strong support lines below for the index. Indicators have turned positive on daily chart and value buying has been seen in small cap and Mid cap banks, PSU bank seems to be ready for short covering tomorrow on expiry
Our recommendation : We are intact with our next tgt 10990 with extended tgt of 11100 with trailing SL of 10500. *Note: all levels are of Spot index and not future.