The Bank Nifty index has been outperforming the benchmark index NSE Nifty for the past couple of weeks. It has rallied about 9% since 19 May 2022.
During the same period, the NSE Nifty has rallied about 6%.
I had highlighted the Bullish Harmonic reversal pattern in a post on 19 May 2022. The index has reversed forming the lows around probable reversal zone (PRZ) and hit my expected target of 35,500-36,000.
The rally is not yet over. The bullish inverted head and shoulder (iH&S) pattern in the follow-up momentum has boosted the spirits of the bulls.
The breakout from the iH&S and the gap area at 35,200, has been re-tested in yesterday's session when it hit the low 35,288.
Additionally, the Open = Low on Bank Nifty Futures and the low is near to the open in the spot price. This confirms the next leg of rally will be fueled by the bulls.
At present, the Bank Nifty index is trading up by 0.6% at 35,700 levels.
Bandhan Bank and AU Small Finance Bank are leading with gains of 2%.
I'll share more on his trend on my Telegram group. If you're interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel - Fast Profits Daily.
In the meantime, do check out the below video where I explain why banking stocks are the best stocks to trade right now.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...
Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.
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