Bank Nifty fails to sustain above 11600 - Aditya Birla Money

Bank Nifty opened gap down and rallied intraday to make new high at 11636. However failure to sustain above 11600 lead to selling pressure creeping in as expected pushing prices towards advocated support at 11300.

With this the index has formed a Rejected Bearish Candle indicating selling pressure at higher levels.

Thus for the day index appears to be weak and is likely to edge lower towards 11220-11200 levels. Relief rally, if any is likely to face strong resistance at 11425-11450 zone

At 11270-11200, the index would have retraced back 61.8%-78.6% of the recent rise. With Daily momentum positive and rising, the index could find support at this zone.

Price action at 11200 zone would be crucial; if prices stabilize and consolidate, the index could resume its uptrend towards 11700-11800. Whereas failure to do would lead to prices retesting the lower band of the falling channel at 11000-10950.

Bank Nifty likely to trade weak towards 11250-11200; rallies to 11400-11450 should be sold into.

Source : Equity Bulls

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