Bank Nifty approaching 89-EMA support level at 12270 - Angel Broking

Yesterday, Bank Nifty too opened on a subdued note inline with our benchmark indices. In the previous report we had mentioned that the index has broken down from the trend line support and has also confirmed the 'Lower Top Lower Bottom' formation on daily chart.

As expected, pessimism was seen during yesterday's session as the Bank Nifty ended in the red. The Index is now approaching the '89-EMA' support level at 12270. Any sustainable move below this level may open up further downside and the Bank Nifty may test 12188 - 12150. Conversely, yesterday's high of 12500 would now act as an immediate resistance for the index.

A move beyond this resistance may result in marginal upside and the index may test 12582. However, traders should note that the underlying bias remains negative.

Source : Equity Bulls

Keywords