The Nifty has clearly formed a Double Bottom on the daily chart. It has also surged and tested its critical zone of 10,870-10,900, which is a confluence of the resistance area.
A break above the resistance would lift Nifty higher towards the 11,000 zone, with 10,800 as the support.
Bank Nifty, on the other hand, outperformed and is on the verge of giving a falling trendline breakout above the 27,200 level. On the downside, 26,850 is an important support for Bank Nifty.
Meanwhile, the Nifty PSU Bank index has confirmed a Bullish Harami Candlestick pattern on the weekly chart by gaining ~2% during this week. We expect PSU Bank stocks to trend higher during the coming week.
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