The Bank Nifty has lost more ground than the overall market

The market has been continuously bearish for seven consecutive sessions. The global markets have been unhappy about Cyprus while domestic politics has also been a bearish factor. The Nifty hit resistance at 5,970 and has since slid to a succession of four-month lows. The current support is at 5,610-5,630.

The Bank Nifty has lost more ground than the overall market and given its large weight in the Nifty and Sensex, it has dragged down the market. The financial index has been bearish in the short-term and it is now showing signs of going into a long-term bearish trend after bulls were disappointed with a cautious credit policy. The BankNifty has dropped below its own 200-Day Moving Average (DMA) and it now has resistance at around 11,300.

The Nifty’s trends also seem bearish. The long-term trend is being tested with the index hovering close to its own 200 DMA in the 5,600-zone. Obviously the short-term trend and the intermediate trends are bearish since patterns of lower highs and lower lows have been established. Moving average crossover systems such as the 10 DMA versus the 20 DMA are also giving sell signals.

For more visit: Business Standard

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