Bank Nifty manges to hold crucial support of 10800 levels - Nirmal Bang

Indian equity ended the volatile week higher. The RBI introduced some measures aimed to curtail liquidity in the system with an objective to reduce speculation on the INR. Following this, bond yields rose, which caused concerns on the bank stocks. IT stocks performed well during the week led by strong numbers from Infosys and TCS. Indian government's decision to raise the foreign investment (FDI) limit in the various sectors also boosted the sentiment. The 30-share benchmark index, Sensex gained 191.38 points or 0.96% over last week to 20,149.85. The broad based NSE Nifty surged 161.30 points or 2.75% to 6,029.20. However, midcap index and small-cap index declined 0.91% and 0.53% respectively.

Nifty has formed a bullish pattern on the weekly charts and has taken support at the rising support line. The index last week has managed to hold the crucial support of 5,900 levels and bounced sharply we expect rise to 6,120 & 6,180 levels in the near term.

Action: Nifty has an immediate resistance at 6,060 levels and on a decisive close above expect rise to 6,180 levels.

The Bank Nifty has managed to hold the crucial support of 10,800 levels for couple of trading session and one can expect a short bounce as most of the technical indicators remain in the oversold territory. There is an immediate resistance at 11,260 levels on the upside and on a decisive close above expect rise to 11,450 & 11,500 levels.

Source : Equity Bulls

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