BANK NIFTY

Once again Bank Nifty took support at the 11000 zone and

bounced back sharply towards 11330 levels.

With this the index is now once again hovering below the

falling trend line formed joining prior intermediate highs, it

will need to be seen if it can breach the same at 11400-

11500 zone. A failure to do so would lead to continuation

of downtrend pushing prices lower towards 11000 and

then 10500 levels.

While the weekly momentum is turning from over bought

zone, daily momentum is struggling to breach past the

neutral zone at 50. This too indicates that prices seem

unlikely to sustain at higher levels.

For the day, the index has strong resistance at 11370

levels; post some initial consolidation, the index seems

likely to correct lower towards 11200-11160 zone. A

breach below 11270 would confirm the negativity towards

11150

 Trades can sell Bank Nifty around 11370 with stop placed above 11420, while conservative traders can sell on confirmation below 11270 for a Target of 11150-11100 in next few days