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BankNifty is already running successful show at D-Street and now its time for Nifty to be showstopper. Nifty was a bit volatile in last 200 points rally from 7600-7800 but now we could see some strong short covering upto 8225. Technically, as circled, index has taken strong closing support at 7670 which is 100 weekly average. On my last post on Nifty, i was waiting for this support and we have got that. Combining that with my Wave's and Indicators, it makes my view strong for a short term target of 8225. May be FED decision is what you all worried but i guess, whatever be the decision, it should be in favor of short covering as chart says it first. I feel with Bank Policy on 29th Sept, Nifty could be Showstopper amongst global markets to outperform the most in coming weeks. So my advise to hold and go long on Nifty with tgts of 8225 n Strict sl 7670
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BankNifty had been the outperformer in the last rally since 2011 but now it seems it would be an equal partner for underperformer in the coming future. Overall sentiments in the markets have turned bearish after the sell of on Friday. Even the global markets had seen sell off on late Friday giving a sign of weak opening tomorrow. If we look at the long term chart of BankNifty, than we had seen a rally from 9940 to almost 21500 which hasnt corrected yet enough to move further and my analysis suggest correct has begun. But as we have more traders so i had to watch the chart closes from Daily period. As we could notice in the chart, index was trading in the downside channel and it has almost breached on Friday. As we expect a gap down tomorrow, this channel is also breached and we could see downsizing channels on BankNifty daily chart which support my weaknening markets. 18346 is the 100 day average which has crossed 200 day average at 18542 for bearish crossover giving a selling idea for the medium. The crossover has been confirmed as the index is trading below the crossover and both the moving averages. As the expiry week kicks off tomorrow, i am expecting a short covering this week but use this as a opportunity to square of your longs and short new trades for next expiry. Stop loss would come at 18850 which is the resistance line of the channel. GST bill and Rate cut are the only trigger which could give some chance of reversal but it has very nuch thin chance to cross 18800 in near future. So overall the index seems to be weak in medium term. Sell rise is what i recommend
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