Bank Nifty trades with weak bias - Aditya Birla Money

As expected Bank Nifty traded with a weak bias correcting the sharp rise seen in Thursday's session. For the day support at 11800 is crucial; holding it the index could witness a up move towards 12000-12100 levels.

In the larger picture, post the Bullish Engulfing formed in week ended 8th Mar, the index lacked follow through buying last week; the index rather traded in a volatile manner falling sharply initially only to witness a strong bounce and close off the lows for the week.

The index continues to hold well above the crucial rising trend line and 200 dema support at 11500 zone.

As long as this support holds the index could trade with positive bias and edge higher towards 12400 levels (61.8% retracement of fall 12974 to 11425).Price action at that zone would be crucial to determine trend going forward. Sustenance above 12400 would lead to up move continuing towards 13000 levels whereas failure to breach past 12400 would indicate that the up move was only corrective and the downtrend could resume once again.

For the day support at 11800 is crucial; holding it the index could witness a up move towards 12000-12100 levels.

Source : Equity Bulls

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