MTECHTIPS

MTECHTIPS:-BANK NIFTY

The Bank nifty witnessed sharp decline again in yesterday’s session as the index dipped below the 9600 levels and closed the day with heavy losses. Banking stocks saw selling due to RBI Dy.Governor remarks and loss posted by Central Bank. The RBI has little room for lowering interest rates further as it still sees inflationary pressure in the medium to long term,  Dy Governor Subir Gokarn said. Any dip below the levels of  9400 now will  be very weak signal for the markets in coming days. The index has crucial support around 9400 levels, and if the Bank nifty regains lost ground & holds above 9600 levels, we may  witness  more pull back.  Overall trend in banking counters is weak and holding at current levels will be very negative signal for the index in coming sessions. Strong resistance in the bank index is seen well above the  9800 levels and the current negative trend will be broken if the index holds above the resistance of 10000.