Why Tuesday's session is significant to watch out for Bank Nifty; know here!

Keep a close watch on Tuesday's price action as we could see this counter-trend rally extending for the next couple of trading sessions if it gets the confirmation of a hammer candle.

Bank Nifty moved above the prior day's high but it failed to sustain at higher levels as profit booking emerged at higher levels.  

During the day, it made a low of 32,426; however, recovery in the latter part of the session help it recoup losses and ended the day with a modest loss of 0.18 per cent. It has been trading mostly sideways for the past couple of days. However, Friday's positive bias did not continue. The breadth remained very negative in the index. The index has formed a hammer-like candle. It needs to get confirmation by closing above 32,927. Another negative closing means that the index does not have the strength to recover. Even a technical pullback needs to sustain above 33,021 for a confirmed counter-trend rally. For the time being, wait for a decisive move to make a decision.  

Keep a close watch on Tuesday's price action as we could see this counter-trend rally extending for the next couple of trading sessions if it gets the confirmation of a hammer candle.