MARKET WATCH: Dissector: CNX Bank Index.

from BUSINESS LINE, January 30, 2011 In our March 2010 review of CNX Bank Index (Bank Nifty) we had written that sideways move between 8,000 and 9,500 can be followed by a surge towards the index's previous peak of 10,775. In line with our expectation, the index moved sideways and found support just above 8,800 level and it subsequently rallied to achieve our price target of 10,775 in August 2010. The index continued to trend higher until it marked an all-time high at 13,303 on November 5.

The index formed a bearish engulfing pattern in the weekly chart backing the trend reversal. Since then it has been on a medium-term downtrend. The index tumbled 5.6 per cent during second …