Considering Bank Nifty's more bullish price structure and its relative outperformance against the Nifty 50, there is a high probability that the banking index could reclaim its record high before the benchmark index does, said Jatin Gedia, Vice President and Derivatives & Technical Research Analyst at Teji Mandi, in an interview with Moneycontrol.
He expects the Nifty 50 to rally towards the 25,358–25,476 zone by the end of this week, as the ongoing Wave 3 remains incomplete and the RSI has further room to rise. Substantial buying by FIIs in the cash market, coupled with a reduction in short positions, is also an encouraging sign, he said.
Gedia identifies Meesho and GMR Airports as stocks with strong upside potential.
"Meesho is on the verge of an upside breakout from its consolidation phase, while its momentum indicator has triggered a fresh positive crossover, signalling a buy. Meanwhile, GMR Airports has broken out of a falling channel and begun forming higher highs and higher lows, suggesting a potential trend reversal," he said.
Can Bank Nifty reclaim its record high before the Nifty 50 moves towards its all-time high, given its strong chart structure and bullish technical indicators?