Bank NIFTY - Analysis between Oct 31st '11 to Jun 15th '12

Bank Nifty Notes:


1. Corresponding to 5050 in Nifty, Bank Nifty has support around 9785 to 9800 zone
2. Previous resistance level of close to 9800, is now taken out and acts as support level (see chart for details)
3. Connecting Bank Nifty high of 11226 & low of 8995 made on Feb 22nd & May 18th, we can see that Bank Nifty has already retraced close to 50% on charts
4. At around 10375 to 10400 levels, Bank Nifty will complete 23.6% retracement which corresponds close to 5250 to 5300 on Nifty

Please refer to Nifty notes, on formation of Inverted U-shape trend formed after a sharp downward trend. More than once Inverted-U shape gets formed and then a slight increase seen and after which a consolidation phase starts


What can happen next in Bank Nifty?

1. A possibility of sharp increase possible, taking the Bank Nifty from current levels to 10375 to 1400, and correspondingly Nifty may move upto 5250 to 5300
2. If the rally does not start and increase upwards, then a sharp downfall may be expected taking it to 9000 levels on chart, which is around 4800 on Nifty. May be even below those levels

However most likely a rally may be witnessed, so let us wait to see what Bank Nifty is going to do next week.