Wait for weakly closing above 11000 in Bank Nifty - Angel Broking

On Tuesday, the Bank Nifty opened on a muted note in line with the benchmark index. It was mainly the banking conglomerates who took the charge in lifting the benchmark index higher and in the process, the Bank Nifty posted sizable intraday gains of nearly three percent. The 'Shooting Star' Japanese candlestick pattern has now been negated as the banking index managed to close well above the high of the pattern.

The Bank Nifty has now traversed both the daily '200 SMA' as well as the '89 EMA', which indicates strength; but at the same time, it has also precisely filled the gap created on January 27, 2013. Since, we are observing a strong resistance zone of 10900 - 11000, we would advise trader's book their long positions and wait for a weekly closing to happen above 11000 mark.

On the flipside, the immediate support levels are seen around 10800 - 10661.

Source : Equity Bulls

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