Bank Nifty manages to hold crucial support of 8600 levels - Nirmal Bang

Indian equity settled sharply higher on yesterday led by metal, FMCG and auto. At the close, the benchmark 30-share index, BSE Sensex added 332.8 points or 1.83% at 18,567.55. Meanwhile, the broad based NSE Nifty climbed by 106.65 points or 2% at 5,448 with 38 components posting rise.

Nifty formed a bullish pattern on the daily charts which has confirmed a positive bias. The index has managed to hold the crucial support of 5,320 levels and bounced sharply. We expect the markets to rise in the near term and maintain an upside target of 5,650 & 5,720 levels.

Action: Nifty has an immediate resistance at 5,510 and on a decisive close below expect declines to 5,650 & 5,720 levels.

Bank Nifty has managed to hold the crucial support of 8,600 levels and one can expect a short bounce as most of the technical indicators remain in the oversold territory. There is an immediate resistance at 9,050 levels on the upside and on a decisive close above expect rise to 9,250 & 9,400 levels.

Source : Equity Bulls

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