Indian Financial sector is witnessing expansion in terms of managing finance and also providing finance. It consists of Lending, investing, insuring and trading services thus providing an efficient linkage between a common man and the depositors.
Nifty finance comprises of stocks which even in this chaotic market condition did not need much of the financial support and has constantly found themselves tightly gripped by the bulls. The Index has been making higher top higher bottom formation since last three years and every decline is seen as a buying opportunity. Its 50 DMA has been acting as a strong support area for the index for the last two years.
In recent times it was trading in a range from 13940 to 14330 levels for the last three weeks but still managed to hold on the support levels. The major contributor of the index such as ICICIBank, Bajajfinance, Bajaj Finserv, Kotak bank, HDFC Ltd. are all trading near their lifetime high zone and continue to look bullish. Thus we may confer that the index may break the range on the upside and continue the up move towards 15000 zones while on the downside the support is at 14330 and below that we may see profit booking decline towards 13900 levels.
Bajaj Finance took support at its 50 DMA and formed a Hammer like a candle on the weekly chart, this looks positive to move towards 4180 levels while support being intact at 3970 levels. ICICIBank has been making higher highs higher lows and every minor decline is bought into, it continues to look positive for 550 levels while support is seen at 535 levels. HDFC ltd held onto its bullish stance and is making higher top higher bottom on its weekly chart, is all set to head towards 2400 levels while support is seen at 2280 levels.
Thus we may conclude by saying that the Nifty Finance is just FINE but following proper levels won’t charge you any fine and instead may enhance your finance.
PS: Above mentioned stocks are not recommendations and is based on technical study.
Author: Miss.Ayushi Sushil Bagri Equity Research (Investment Services), 16th December 2019