Nifty PSU Bank Outlook for the Week (Oct 12,2020 – Oct 16,2020)

For the Week: (Oct 12,2020 – Oct 16,2020)

NIFTY PSUBANK Index closed the week on positive note gaining 41.15 points 3.18%.

Weekly High: 1,336.35

Weekly Low: 1,278.65

Weekly Close: 1,333.40

Weekly Support & Resistance For Nifty PSU Bank Index:

SUPPORT 1 1,295
SUPPORT 2 1,258

NIFTY PSUBANK index was in consolidation most of the week despite broader rally. However, index witnessed strong gain at fag end of the week and mark reversal. We expect further rally in index back of buying in private banks going forward.

Technically on the daily charts we see minor support on the downside for NIFTY PSU BANKS index lies at 1280 levels, where as minor resistance on the upside is capped around 1375-1400 levels.

If NIFTY PSU BANKS index breaches minor support on the downside and closes below it, we may see fresh break down and index can drag towards major support on lower side around 1250 and if breaches minor resistance on the upside and closes above it, we may see fresh breakout and index can head towards higher levels around 1440.

Currently NIFTY PSU BANKS index is trading below 200 days exponential moving average and suggests long term trend is bearish. EquityPandit’s analyst predicts range for the week is seen from 1275 on downside and 1425 on upside.