Bank Nifty loses 3% in intraday - Angel Broking

Yesterday, Bank Nifty opened on a positive in line with our benchmark indices and pared down all its early gains post Union Budget announcement to close with a significant intraday loss of over 3%. Selling pressure was witnessed in all the heavyweight and midcap banks.

The ‘Bullish Harami- pattern mentioned in our previous report has been negated. However, looking at the oversold conditions of momentum oscillators on the daily chart creation of fresh short positions at current levels in the index is not advisable. Moreover the index has achieved its ‘Bearish Head & Shoulder- target of 11600.

On the downside 11256 - 11185 levels are likely to act as support for the day. Traders holding short positions in the index can further trail their stop loss to 11810 level.

Source : Equity Bulls

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