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The downtrend in the Bank Nifty paused last week. It has closed at 14,344, up 2.7 per cent for the week. The index is getting support near 14,000 around which the 200-week moving average is also poised.
Another important trend support is near 13,750. Resistances are at 14,760 and 14,844 — the 21-day moving average. The immediate outlook is not clear as the Bank Nifty is currently placed at the middle of the supports and resistances mentioned above.
A rise to test the resistances at 14,760 and 14,844 is likely this week. A strong break above 14,844 will see the up move extending to 15,150. On the other hand, the inability to break above 14,844 and a subsequent reversal from there could add pressure on the index. It will increase the possibility of the Bank Nifty revisiting the crucial supports at 14,000 and 13,750.
In such a scenario, there is possibility of the index trading range-bound between 13,750 and 14,844 ahead of the Budget next week. However, a strong break and a decisive weekly close below 13,750 will increase the danger of the index falling to 13,400 and 13,350 levels.
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