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The Nifty and the Bank Nifty today did a good job of closing above value area high from friday.Though price was with the buyers all day today, in terms of momentum for the swing term, it is still an equal game and action early tomorrow morning would set the trend up for the next 100-150 points.
The price action of today is a DD pattern in the Nifty, which has scope for continuation, but there were no immediate triggers for a run-away upmove.It is safe to say that the downtrend has been halted for the tiome being as we saw value being established side-ways today.
The Bank Nifty reached out to it’s previous break-down zone today near 12460 which halted it’s advance slightly.
We used the divergence between the Nifty and the Bank Nifty at the close on Friday to set up good long positions which are up 325 points at the moment.
Looking further, we expect the Bank Nifty to lead again and a move above 12460-12490 should confirm that.
Let’s see what tomorrow brings.