During the last four to five days market has been in close range, so what is the market indicating. We would now look into the Bank Nifty which has some good weightage in the market. bank nifty seems to have formed H&S pattern and has broken below the neck line which, the target for the same is coming to be around 9400 levels and now we are at 10350 levels, so we have now nearly 900 points from that level. currently bank nifty in the last one weeks seems to be forming a flag pattern. Generally Flag pattern is formed in the middle of the ensuing trend, so we seems to have completed only 50% of the fall and we have yet to move another 50%, the trend has started from around 11200 levels so this is also pointing towards another 1000 points from current levels. Till this pattern is negated the market has all the chances of moving down from current levels. any breach of 10300-10250 levels would confirm the break of flag and down trend would confirm.

 

M.Sri Mahidar

Trend is Friend.