The Bank Nifty jumbs up from the day low to the high,it jumps from one high to another high.The day low was 8843.00 and the day high was 8959.00.
When i look up the oscillator slow stochastics it was unable to lift up itself to the heights,but it was really stretched up too much for no reasons.of course one can not expect any reasons in this stock market.The trader must expect the unexpected that becomes true when the whole crowd was waiting for a further correction the market was went against their expection.I have recived so many desparate chat messages from many of my friends who gone short and did'nt cover the position when it came down thinking/expecting that it will fall further,and as you know there were no chance afterwards.
One must stand unique from the masses.The market is driven by so many sentiments of the traders.We must know some times, especially, situation like this we have to stand away from the mass psychology to predict the real trend and pulse of the market.
The above Graph shown is spot bank nifty and it is from yahoo.see the trend line it is broken.
The channel is broken and we expect the bank nifty future may fall further for another 200-points from the current level.The results of many IT companies(like infosys) seems to be outstanding and that may pull up the nifty and that impact banknifty too.But the overall trend as per technicals is Down.
"Wish you all a Happy Pongal"