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BANK NIFTY FUTURE :
In the attached Chart, I have marked a triangle which shows that we are close to the apex of the triangle and break out is just a few days away.
As can be seen on the chart, the upside breakout happens above 10530. While one would like to believe that the break out will be on the up side - with good results announced by leading private sector banks and much awaited cut in repo rates by RBI. However, the fact remains that this optimism is not reflected in the Bank Nifty chart, as we closed today with a doji on the Monthly candle (not shown) chart.
In view of the above, one needs to be prepared for a down side breakout in the coming few days and this will get confirmed once Nifty Future trades below 10000. On the downside, Bank Nifty Future will find support at 9835 (previous bottom), 9500 and 9200 over the coming days/weeks.
One can consider going short below 10200 with stop loss of 10300.
While the downside target of 8400 looks unlikely today, one needs to be prepared for it once Bank Nifty Future trades below 10000. I am sure the reasons too will follow. Moreover, you will also find that I have marked arrows on the attached chart which show 'gaps' - and these too have to be filled sooner or later.
With Best Wishes,
Ketan Asher.
