Most of the investors must be having the question in mind as to why Bank Nifty is not moving in spite of recent correction having ended in nifty at 10125.
The answer is simple. When you look at Bank Nifty moves in November, it has already surpassed the previous high of 25260 and went ahead to touch 26200 in its own style. While touching the new highs, it has created a record of crossing 2 top levels viz 25867 and 25975 on a single day and touched 26200 and came back below 26000. This is triple top formation. Normally when triple top formation happens, we can expect a reasonable correction of 500-600 points from the top. One can expect Bank nifty future to reach between 25500-25600 level to complete the cycle in order to continue its upward trend. The exact number is 25595 from where reversal is possible.
The trend in Nifty future is exactly opposite. It has never crossed even the first target of the month ie., 10567. We expect Nifty to pick strengths from Non banking scrips to float above 10400 level and surge ahead while bank nifty likely to complete its cycle in the meantime.
It will be interesting to see the index move during the next week. If Nifty has to move up then Bank Nifty also has to move up. But the situation looks like BNF not going to support before completing its cycle. Unless this happens on Monday or Tuesday , there could be yet another week with a range bound trade to erode the premiums of options.
Nifty has crossed the hurdle 10382 on a daily close basis. Exit from longs if again if it closes below 10382. Other wise hold on to long position for target of 10567.
Happy Trading!
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