Bank Nifty’s zone transmitted can activate a sharp pullback: Nilesh Jain

After various sessions from underperformance, the bank Nifty finally offered much needed support to the wider market on Friday, so that the hope that benchmarks could close at the end of the trade in the green.

Technical analyst Nilesh Jain pointed out that the Bank Nifty, who lags behind during the August series, has now gone into a brought zone. “Today we see a little outperformance in Banknifty today. This is a positive sign for the markets. Many short positions have been transferred in the September series, so Bank Nifty makes a candidate for short coverings,” said Jain in a conversation with ET now.

According to him, if the index succeeds in keeping 53,800 on a closing basis, this could cause a recovery to 54,500-55,000 levels in the short term. A further withdrawal to 55,500 is also on the table if the momentum persists.

On the Nifty 50 front, however, Jain made a cautious note. “The Nifty is structurally weakened and forms a formation with a lower high high.

When asked about the short -term trade strategies, Jain emphasized a share -specific approach. He recommended Finolex Industries (Fin Pipe) from the cash segment and noted that the stock has recently broken out of a falling channel and successfully tested the Breakout zone. “It seems ready to go to £ 220-225 levels with a stop-loss at £ 207,” he said.

Another choice on his radar is Cummins India, who has been in a steady upward trend, which consistently forms higher highlights and higher lows. “The share remains strong in the graphs and can go to £ 4,500 with a stop-loss placed under £ 3,820,” Jain suggested.

With bank Nifty that shows signs of life and selected shares that offer opportunities, traders look at a short bounce. However, experts warn that persistent power will only return if there is critical support.