Wednesday's hammer candlestick pattern formation turned out to be an important development for Friday’s strong up move as the hammer's top was surpassed with a gap up. Furthermore, Nifty has also broken out from a falling channel pattern and passed the 11,500-mark on the smaller time frame chart, which is a positive development.
Going forward, we expect the positive momentum to extend up until 11,600-levels, which is the top of the right shoulder of the entire head and shoulder pattern. On the downside, 11,400 is likely to act as a crucial support.
Bank Nifty, on the other hand, surged higher too, thanks to a swift recovery that was seen in the private banking space. Going ahead, 27,000-27,050 zone is likely to act as a crucial support for the index.
On the upside, 27,600-27,650 will act as the immediate resistance zone for Bank Nifty.