#7 BankNifty Update: Super Over between Bulls and Bears
BanknNifty has banked your profits to some extent since are last post on the same i.e, Our tgts 10390/10580 has been achieved on our long call recommended on 30th Jan.Technically Banknifty is trading weak below 100D EMA and 200D EMA which suggest a under performance compared to Nifty which is trading above both the long term averages. This negative divergence calls for a volatile session ahead in either of the Index and i am of view that BankNifty will see some steep upside move. Today bankNifty gave a positive breakout on Upside small channel and closed above tht line as you guys can notice on the daily chart of Index above. But today i just came across a new bigger channel which has a strong resistance at 10630 tomorrow. So tomorrow its Superover between bulls and bears in which only one could win. But the volumes and Indicator are suggesting a strong upside move which could be confirmed strongly with a close above 10630 on the index tomorrow. FM yesterday announced more infusion on in the PSU banks of Approx 11k cr which markets took as a cheering factor on banks today which lead Nifty today. Some of the pvt sector banks chart have since a strong bounce bank from 3 years support line which makes it more bias towards sky scraper BankNifty. Index has closed above all the Short term Moving averages today giving some fishy smell. but upside is capped near to 100DEMA and 200DEMA which is around 10900 levels. So we are intact with our previous long call.
Our Strategy: Hold long on the index as intimated on last post with next activated targets of 10780/10990 with trailing closing SL of 10200