The sell-off which began at 12480 yesterday in the Bank Nifty seems to have abated at 11750 in the Bank Nifty and the touch of 11690 later in the day, a previous HVN seems to have confirmed a ‘b’ shaped profile in the index.
It tells us that the shorts from 12480 and 12225 seem to have covered some positions today.
Whilst that does not always mean that there are higher levels ahead, it was good enough to initiate some longs at an average cost of 11735 today.
11690 continues to be an important support and 11835 will have to be conquered for a move to 12040 and 12225 to begin.
The Nifty put in a bell shaped curve today, indicating buyers stepping in after the 140 point sell-off from yesterday afternoon. The seller still operates at 6040 and that level would still have to be overcome on a closing basis.
Value areas : 5978-5990-6003 in the Nifty.
and 11764-11809-11846 in the Bank Nifty.