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Bank Nifty Drivers on Charts !!

It is that, one horizontal trend line that an active trader in any market would love to see on a technical chart. Bank Nifty at the moment is staring at an important resistance level which separates it from new all time highs. Volumes too appear to be good and in favor of a break out to the upside. Daily momentum indicators too are building up good signals that indicate a big up move is around the corner. The time band I am here referring is till the 9 month expiry in the Indian markets. The bank Nifty is roaring to go, yet has shown some signs of weakness which may not force banknifty to make lower levels any lower than 4 % from current market levels. Probably I know the reason too.

Each member in a team is important and has to perform in random with the other players in the pool and the problem lies when the team captain has kept itself as a reserve in the current rally by the team, With 24.89 % weight in bank nifty, India's largest PSU bank leads this team. SBI is still due with resuming an uptrend with the lower fractal, however the long term trend is towards the upside. According to my charts one can expect SBIN going down to 2310 levels before it inches closer to its actual fundamental equity value. So any buy between 2310-2400 is a very good opportunity to enter the stock and make exceptional returns. Mark your stop loss not below 2260 levels.  My first target is around 2513 and second near 2700 levels. It has to consolidate towards that level before it makes any new highs in last so many fiscal quarters.

If we talk about the deputy; ICICI, moved out of a complex penta-abc correction a month before the India's Independence Day. It took ICICI nine trading days to complete its first wave in the bigger 5th fractal. It witnessed a straight zig zag correction right till the 61.8 % retracement level of the first lower fractal wave has not shown any sign of a reversal. Since then it hasnt shown any sign of weakness with momentum indicators to playing alongside the trend. if we talk of its shorter term targets one may expect it to reach 1607 odd levels in another 4-6 trading sessions. Place your stop below 1495 levels.  Your buys levels should be at 1-2 % dips to the downside from the current market levels. Lets understand that dips play an important part in big rallies, something which is anticipated in the shorter term from the BFSI  in India

Yes !!, Yes bank shall try to make a newer high tomorrow. I ll tell you, the golden rule for a trader is " Never ever be scared of buying in the stock which is making a new high, specially when you know the calculations and the next target." I strongly believe that Yes Bank shall reach another 5-7% higher levels with in a trading session or so. Talking of highs, I think of Kotak too. Kotak closed t its all time high and shall continue the up move for another 5% before it faces resistance from the elliot levels. Hence short term targets for Yes bank and Kotak is 620 and 1050 respectively.

Talking about Bank Baroda and HDFC Bank, I am eagerly waiting for them to complete its down cycle and join forces to aid the bank nifty attain higher levels. As a matter of fact most of the securities rose to new highs during MR Modi's fanatic win except for the bank nifty. All we can expect from what I make of red, green candles on a black background; the time of integration of the directional index of the  players in the team is about to come soon. Wear your seat belts and enjoy the ride.

 Keep Investing and Keep Walking
Nikhil Dhingra

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