Bank Nifty breaks down from trendline - Angel Broking

On Friday, Bank Nifty too opened on a subdued note and then in-line with our benchmark indices started correcting right from the first trade. The selling pressure was so intense that index could not hold its important support level of 12582. This has resulted in a breakdown from the trend line and also has confirmed a 'Lower Top Lower Bottom' formation on daily chart.

In addition, the weekly momentum oscillators are negatively poised. Considering these evidences, we expect further correction in the near term. In this scenario, index may slide towards the immediate support levels of 12266 - 12144.

However, in case of extreme pessimism, this may even slide towards 11850, which is the 61.8% Fibonacci retracement level of the rise from 10888 to 13414. On the flipside, 12582 - 12690 may act as a strong resistance for Bank Nifty. These levels can be used for exiting long positions or creating fresh short positions.

Source : Equity Bulls

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