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:
Wave
Analysis:
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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