If you have been following the blog for sometime you would know of us as passionate Bank Nifty traders.
Most of the time you will see on this blog a Nifty chart along side the Bank nifty.
Our reasoning is very simple- We Consider the bank Nifty as the leader of the two instruments, a fact which has helped us and kept us ahead of some major moves of the market.
So as the market revists the 5750 zone, it pays to keep an eye on what the bank Nifty is doing currently .
Here is the profile chart of the past five days :
As you can clearly see we have operated this entire week well within the 10960- 10380 range set on the 14th of Jan.
Today the bank Nifty stayed above the 10488 point of control of the balanced profile on the 17th of this month( brown dashed line). Infact it was the low of the day today.
Relatively speaking it was much stronger than the Nifty future which broke below it’s level of 5661 in early action today.
The high of the day today was actually the point of control of the profile dated 14th of November ( brown dashed line from 14th ).
Much of what can happen tomorrow will depend on how well the Bank Nifty can negotiate with the seller at 10920-10940.Success here will easily bring 11040 and 11185/ 11270.
If the Bank Nifty does manage to do that, then we will be witness to the nifty future flying over the 5750 level.
Supports will be at 10824/ 10736.