Chart Reading: Sensex, Nifty and Nifty Bank heading towards breakout levels

The Nifty50 index rose by 80 points on Friday rising above 10,850 to close at 10,859. It finished the week with a gain of 1 per cent.

NSE Nifty50: The index rose by 80 points on Friday rising above 10,850 to close at 10,859. It finished the week with a gain of 1 per cent. The current level is near 100-DMA, located at 10,914 as per the daily chart. A recovery from 10,534 with an immediate gap up close and a red candle crossing high of 10,834 indicate it is heading towards the breakout level. The 100-DMA of 10,914 along with recent high of 10,985 stay as the immediate resistance level. The support comes at 10,750 levels followed by 10,680. The trend indicates Nifty is heading towards breakout level of 10,984, chart suggests. CLICK HERE TO VIEW THE CHART

BSE Sensex: The index closed at 36,076, rising 269 points or 0.75 per cent on Friday. It has broken out, scaling above 36,500. The recent dip towards 35,000 indicates retesting of crucial support levels of 50-DMA on the daily chart. A strong rally of 500 points during the last three sessions highlights the strength of the index. A rally above its 100-DMA, located at 36,222 may attract strong buying. A decisive move may lead to 37,000, chart suggests so. 

NIFTY BANK: The index is strongly holding support of 100-DMA located at 26,470 level. The technical indicator RSI (Relative Strength Index) and Stochastic have made a positive crossover, indicating further upside as per the daily chart. A decisive breakout above 27,370 may lead to 27,700 in the coming sessions, chart suggests. The 50- DMA is on the verge of making a 'Golden Crossover' with 200-DMA on the daily chart - a scenario signalling positive sentiment for the index.