Bank Nifty continued the strong outperformance which is lines with expectations. In our daily research report "The Financial Waves short term update" we have highlighted how this sector can strongly move upside when Nifty was trading near 7710 levels. For more details on subscription to daily research visit http://www.wavesstrategy.com/
Bank Nifty Weekly chart:
Bank Nifty Daily chart:
Bank Nifty 60 mins chart:
Bank Nifty has been a leading index in current rally. This has been exactly as expected and now on Friday’s trading session prices finally took out its earlier high of 15742 which was made on 16th May 2014 and closed at days high at 15820 levels.
As shown in weekly chart, the recent consolidation which was ongoing since May 2014 is same as the one which was seen in mid 2009 as shown in blue circle. This is one of the examples of fractal nature of market. Post breakout sharp up move was witnessed in mid 2009. The same can be expected at current level. This can be confirmed with channeling technique and weekly RSI which has more room on upside.
As shown in daily chart, in the last update we also mentioned the importance of 50 days Exponential moving average which has provided good support. Prices reversed from the same average and broke out of consolidation of past 3 months.
As shown in 60 mins chart, internal structure of intermediate wave (v) suggests that minor wave iii is ongoing on upside. Now, on downside 15450 will act as an important support and as long as this level is protected we can expect an up move towards 16500 zone.
In short, our bias remains positive for Bank Nifty with the support of 15450 for an upside move towards 16500!
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