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Institutional Research - Technical

Bank Nifty - At Key Support Levels

May 21, 2012 , 2010

Bank Nifty is presently trading at 9400 levels. Confluence of key supports may halt the downside move of Bank Nifty in the coming days. Here are some of the reasons we expect the index to bounce in the coming days. (1) Bank Nifty is presently trading at 61.8% of the retracement of the rally (from 7772 to 11258) and we expect this to be an important support level from where prices can rise. (2) The completion of ABC correction on daily charts where Wave C was equivalent to Wave A indicates that the next move of Bank Nifty will be in upside direction. (3) On weekly charts, Bank Nifty is currently trading at 200-day moving average. This average is of critical importance and Bank Nifty is expected to stop some time at these levels. (4) Looking at these parameters, we expect Bank Nifty to move towards 9850 levels on immediate basis.
Chart 1: Bank Nifty: Retracement Levels

Source: Systematix Institutional Research

Subodh Gupta, CMT subodhgupta@systematixshares.com (+91 22 3029 8261) May 2012

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Chart 2: Bank Nifty : Elliot Counts

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Institutional Research

Source: Systematix Institutional Research

Chart 3: Bank Nifty Weekly Chart: On 200 days Moving Average

Source: Systematix Institutional Research

May 2012

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Industry Views
Fundamentals/Valuations of the sector are expected to be attractive over the next 12-18 months. Fundamentals/Valuations of the sector are expected to neither improve nor deteriorate over the next 12-18 months. Fundamentals/Valuations of the sector are expected to deteriorate over the next 12-18 months.

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