Here is a chart which shows the BN- NF ratio in terms of relative price movement.
As can be seen the banks have under performed the Nifty for the past three months as the slope of the graph shows.
But Now the downward sloping trend line has been broken and the ratio is free to move towards the 1.77 objective. Current price is 1.73.
In the last series we had noted heavy short Rollovers in BankNifty around the 10450- 10550 zone.
All those are under pressure in today’s auction.
Technically the Banks are set to lead a leg up if any.