Bank Nifty : Sustaining Below Its Crucial Support

Dear Readers,

It has been noted that the BankNifty has taken support around level of 18180 - 18190 many times. Today, as shown in the chart, we can see that BankNifty not only has breached out of the "Triangle" formation but also has breached and sustained below its support around 18180 - 18190 level since 25th November, 2016 for longer period on 15 minutes time bar chart. The level of 18180-18190 and the supply line of the triangle seem to act as resistance for the near future. Also, the MACD oscillator on various time scale basis does also suggest that the BankNifty has opened up the possibility for the southward movement more deeper than its low of 17952.60 on RBI's policy day.

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Comment:

Today, the BankNifty made a high of 18167.15 in the early sessions of trading sessions, but failed to keep its grip over the initial gains as in the later part of the trading sessions the intraday gain of more than 100 points wiped off. Secondly, as mentioned in the post earlier that the BankNifty has, after many days of range bound trading above the level of 18180-18190, have sustained below it for longer period on time scale bar chart.
The BankNifty taking its resistance at 18180 level shows the power of bears have got grip over it. The BankNify may see the level of 17800, 17500, 17200 and/or 16900 at a later stage of its trading days.