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On Friday, the Nifty Bank index fell 207.8 points or 1 per cent, experiencing selling pressure, to close below the 20,000-mark. This fall has underperformed the broader index the Nifty 50 index. However, with marginal gains, the Bank Nifty managed to close on a positive note last week.
The daily relative strength index has entered the neutral region from the bullish zone. Slump below the immediate support at 19,800 can bring back selling pressure and drag the index down to 19,500 in the short term.
Nevertheless, only a decisive downward break through of the key support at 19,500 will mar the short-term uptrend and pull the index down to 19,000. Traders should be alert and consider initiating fresh short positions on a slip below 19,800 levels with a fixed stop-loss at 19,950.
On the upside, strong rally above 20,150 is required to strengthen the bullish momentum and push the index up to 20,500 in the short term. Key resistances above 20,500 are at 20,900 and 21,000 levels. Next supports below 19,000 are pegged at 18,500 and 18,300 levels.
Medium-term view: As long as the index trades above the significant medium-term support as well as trend-deciding level at 17,000, the medium-term uptrend will be in place. Key medium-term supports are at 18,500 and 18,000. Likewise, resistances are at 20,500 and 21,000 levels.
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