The index bounced back sharply on last Monday to close at 6695; in the process, it is signaling the possibility of a recovery today. Unless it falls again below 6650 and stays there, we might see a good recovery taking shape in the day’s session. We would understand strength coming back if the index were to stay above the most critical level of 6703 on a sustained buying campaign. In that case, the next level to watch out for would be 6718. The other two significant resistance levels are 6741 and 6775 before it tests 6800 or higher levels. Based on Gann and Fibonacci studies, the level of 6817 would be very crucial - whether it would be bullish or bearish going forward.
- Most critical level for the day: 6703, its immediate resistance
- Strong resistance: 6718 – 6741
- Major resistance: 6775 – 6817
- Strong support: 6666 – 6649
- Major support: 6619 – 6586
It looks as if we might have seen a short term bottom for the Bank Nifty around the zone between 12450 and 12425. Unless this support range is violated, a recovery could well be on the cards. Only when you see the index taking out decisively the levels between 12546 and 12564, you could expect likely further upward movement. However, for this index, the range between 12700 and 12800 assumes great significance since herein the maximum supply could again be noticed.
- Most critical zone of the day: 12546 – 12564
- Strong resistance: 12700 – 12797
- Major resistance: 12870 – 12980
- Strong support: 12450 – 12425
- Major support: 12365 – 12246