In recent past, Nifty has been quite volatile but Nifty Bank Index has shown some steady growth from 18900 to 19700 levels. One common characteristic of charts of both nifty and nifty bank is that both are channeling in downside direction and have closed exactly near to resistance line yesterday. Now what next?? Surely havent yet got any confirmation for more upside on Nifty but a slight more upside could be witnessed on Nifty bank charts. As per my Wave counting, we are still into a corrective Wave but we can witness a reaction move in upside direction and Nifty Bank could outperform during this reaction as its about to move out of the channel
As we even look at some other factors, say Indicators, they have also given a positive crossover from the oversold zone indicating a short covering. Secondly, Nifty bank has taken strong support on 50 day average giving a sense of bulls momentum for near future. Thirdly, Option writing is suggesting resistance this expiry around 20000! But traders should take position in next expiry with target of 20233 in mind where probability of Wave B ending is expected!
Safe Traders: “No Trade until Clear sign”
Risk Traders: Buy with tgt 20230 SL: 19450
Rd disclaimer before investing on my view!