Bank Nifty has been a outperformer in recent rally in last 6 months but now it seems it gonna break down from the channel too. Channel though is a downward sloping but if it breaks on downside then momentum and volatility will be fast and furious. One strong factor supporting my downside view is that Index has closed below 200 Day Average (Yellow line) for 6th Consecutive session which means weakness. Indicators i.e., MACD and RSI, have already shown bearish crossover of its average. Secondly, index is consecutively trading below short term moving averages 5 and 10 day SMA. So inshort if we break below 35506 then fresh shorts can be initiated. Target would be open while SL is at 200 day average 36940. Cheers!
