Bank Nifty retraces back 38.2% of last leg of fall from 12500 to 11400 levels - Aditya Birla Money

As expected, Bank Nifty traded with a positive bias edging higher towards 12850 levels.

With this the index has retraced back 38.2% of last leg of fall from 12500 to 11400 levels and is also testing the falling trend line at 11850 zone. Moreover intraday momentum is has been over reactive and is extremely over bought making prices vulnerable to correction.

Thus for the day the index is facing strong resistance at 11850 zone; failure to breach and sustain would lead to selling pressure creeping in which could push lower towards 11650-11600 levels.

Daily momentum has given a positive crossover; While the weekly momentum is at oversold zone it is yet to turn positive Thus the index is likely to face selling pressure at higher levels.

Only a breach and substance above 11900 would keep the sentiment positive towards 12100-12200.

Strong resistance at 11850 zone; failure to breach and sustain would lead to selling pressure creeping in which could push lower towards 11650-11600 levels.

Source : Equity Bulls

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