Compared to the overall market, Price Action of Bank Nifty is leading this time.
It’s mainly because of the performance of top tier banks such as HDFC, ICICI and SBI.
Take a look at the Price Action Analysis on Bank Nifty
Bank Nifty – Price Action Analysis on 2h Chart
When trading in indices such as Nifty, Bank Nifty and Fin Nifty, it’s better to look at 2hr Timeframe because of clarity and consistency in Price Action
We can witness a nice uptrend since from Mid-March. Prices have rallied all the way from 38800 to 42800.
But recently we can notice some subtle weakness in the Buying pressure.
Even the Momentum which measures the strength of the price is also declining
To learn more about trading momentum and trends with Price Action, checkout the video link given below.
Right now, it looks like the uptrend is over extended and prices could go into a small or moderate correction before continuing further upside.
In order for the prices to continue further upside, we need to either see a Strong buying pressure or a positive surprise.
What do you think about Bank Nifty? Does it have more energy to go further upside or will it reverse?
