NIFTYBANK:- "Small is beautiful"

Big headlines, big data, big banks, all in bearish tone. Either the ongoing diplomatic news, economic headlines, or the big hank HDFC on the decent. It is not leaders' problem; it is followers' problem. While it is important to note to follow the big picture, it is not always keeps one on the winning side. There are occasions very much valid, as all big pictures are part of the small picture at some point of time or other. Coming here the small is the PSU Bank space, each day one counter or the other is rising should use the word powering to the top piercing all the 52-week high. There is empirical evidence to suggest any momentum that holds and moves past the 52 weeks that space continues to beat the market for the following year. That is huge input to hold faith. Nifty bank hit recently the lowest low of this move around the 44400 area. The subsequent move towards 45000 held. Ideally this is the supply zone. Alternatively, any break of this should move higher. Thus, the selection of the small frames today. Clearly it holds the Inv. H and S pattern and any break of this will move higher by another 400 points to say the least. Attempting a long on any dips to 44650-700 or writing the puts remains the approach (take the shortest expiry as built in risk reward trade) or hedge appropriately. Next week is crucial with MPC and US data. On the US yields they have hit the max and cluster of price action may potentially push the curve to crawl. Crude is stabilising and has so far not threatened us. Markets slowly absorbing the bond Index inclusion, sanity returns, FX returns to its usual mode. Trade Small, the small frame, big the big frame remains suggestion always.