Expect bounce in Bank Nifty only if it sustains above 11420 - Angel Broking

On Friday, the Bank Nifty too opened marginally lower and continued Thursday's pessimism during the first half. Despite a sharp bounce in the last hour of trade, the Bank Nifty eventually closed marginally in the negative territory.

We observed that the Bank Nifty bounced back after precisely testing the weekly '89-EMA' level of 11235. Also, it is trading marginally above the 'Upward Sloping Trend Line' drawn by joining 9814 (low on September, 2012) and 10888 (low on April 18, 2013). Hence, going forward, a sustainable move below 11210 would trigger immense pessimism in the index. In this scenario, it may slide towards 11000 - 10888.

On the flipside, the daily chart depicts a 'Narrow Range' body formation. Hence, considering oversold condition of hourly momentum oscillators, we may expect near term bounce only if the Bank Nifty sustains above Friday's high of 11420. In this case, it may bounce towards 11588 - 11656.

Source : Equity Bulls

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