Weekly Chart II
The Bank Nifty is in tandem with the Nifty having made a hammer on the weekly charts. Some pullback may be expected due to it's bullish psychological characteristic.The fact that the bulls managed to finally pull up prices and close at the upper range, weakens the bear strength to continue pushing prices down.
Bear flags are formed by the early short sellers booking profits and investors who consider the fallen prices as a bargain.Eventually the bears win as the genuine buying with good volumes is absent.
In case of the Bank Nifty, the bear flag has now been decisively broken on the downside. This will weigh on the mind of the bulls and cap the rises.The bullish hammer though may see some pullback.
View : Mildly bullish with possible caps at 10972-11156-11360. Stop loss on longs at low of hammer - 10340.
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