11567 to act as important supply zone for Bank Nifty - Angel Broking

Yesterday, once again indices opened marginally higher as suggested by the SGX Nifty early in the morning. Indices then slipped into a consolidation mode and traded with very lackluster movement throughout the first half. However, during the latter part of the session, markets corrected sharply to close inside the negative territory. The Oil & Gas, Realty and Auto counters remained under pressure; whereas the Consumer Durables and IT sectors outperformed our benchmark indices. The advance to decline ratio was neutral during yesterday's session. (A=1131 D=1183) (Source-www.bseindia.com).

- The '89-day EMA' and the '89-week EMA' are placed at 19330 / 5849 and 18517 / 5603 levels, respectively.

- The '20-day EMA' and the '20-week EMA' are placed at 19271/ 5811 and 19326 / 5848, respectively.

- The weekly 'RSI' and 'Stochastic' oscillators are positively poised.

- The 61.8% and 78.60% Fibonacci retracement levels of the fall from 20444 / 6229 to 18467/ 5566 are placed at 19689 / 5976 and 20021 / 6088, respectively.

- The weekly chart now depicts a 'Bullish Engulfing' pattern but the monthly chart shows a 'Bearish Engulfing' Japanese candlestick pattern.

Our benchmark indices came off sharply during the second half to close with more than half a percent loss. In our previous report, we had mentioned a 'Channel' pattern seen in the hourly chart, which is still intact. Indices are now trading near the hourly '89 EMA', which is considered as a decent support. Hence, a breach of yesterday's low (19237 / 5802) would lead to an intraday correction towards the 19147 / 5760. However, considering slightly broader perspective, only a sustainable move below 19147 / 5760 would trigger immense pessimism in our market. On the upside, 19640 / 5904 remains to be an important resistance level for our market. A close beyond this level will result in a breakout from a trading range and markets may head higher to test 19711 / 5972 levels.

Yesterday, the Bank Nifty too opened higher in-line with our benchmark indices and then traded sideways for the entire first half. A sharp correction during the last couple of hours resulted in closing almost at the lowest point of the day. The charts of this Index are weak and the prices continue to remain below the 20 day EMA placed at 11567. For the coming trading session, we are mentioning a trading range of 11567 to 11317. A sustainable move below the lower end of the range would pull the index towards its next support level of 11176. On the flipside, 11567 would act as important supply zone for Bank Nifty in coming trading session.

Source : Equity Bulls

Keywords