Bank Nifty like Nifty is trading within the 3rd wave of a mega bull run in the long term charts. Let us focus on the short term picture now. Ever since hitting a high of around 25,200 in August , bank nifty has not been able to make much headway unlike Nifty. Let us concentrate on the bank nifty movement marked inside the black box. There are two possible scenarios at the moment:
1) Bank Nifty completed an ABC correction at 23,912 and started a new impulse. Wave (i) is completed at around 25,690 and we are witnessing a wave (ii) now. This aligns with my view on Nifty where we might be undergoing a similar wave 2 correction.The green lines shows how Bank Nifty could move in the coming days under this scenario.
2) Bank Nifty completed the B wave of an ir-regular correction and has started the C wave . In this scenario Bank Nifty has a lot more downside potential as shown by red lines.
Either way Bank Nifty has a lot more upside left and the downside could be limited to either 24,600 or in worst case to 23,500 odd levels. For long term investors the pullback is an excellent opportunity to add some good banks under your portfolios.
Good Luck!!!!
1) Bank Nifty completed an ABC correction at 23,912 and started a new impulse. Wave (i) is completed at around 25,690 and we are witnessing a wave (ii) now. This aligns with my view on Nifty where we might be undergoing a similar wave 2 correction.The green lines shows how Bank Nifty could move in the coming days under this scenario.
2) Bank Nifty completed the B wave of an ir-regular correction and has started the C wave . In this scenario Bank Nifty has a lot more downside potential as shown by red lines.
Either way Bank Nifty has a lot more upside left and the downside could be limited to either 24,600 or in worst case to 23,500 odd levels. For long term investors the pullback is an excellent opportunity to add some good banks under your portfolios.
Good Luck!!!!