Bank Nifty to consolidate as long as support at 10900 holds - Aditya Birla Money

Bank Nifty traded in a volatile manner; opening with an upside gap but then failing to sustain and falling to make new lows only to bounce back sharply to close in the green.

For the day support at 11070 is crucial; a breach below would lead to index correcting once again towards 11000-10950.

On the other hand if the support holds, the up move could continue towards 11250-11300 levels.

Daily momentum has formed a positive divergence with prices by not confirming the new lows. However further price confirmation (follow through buying) would be needed to conclude that a short term bottom is in place.

As long as support at 10900 holds, the index is likely to consolidate/ trade in range bound manner with positive bias between 10900 and 11400.

Source : Equity Bulls

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