Let me cut short the top down analysis quicker in Bank Nifty Future Charts. We are trending higher on the monthly timeframe, weekly timeframe and daily timeframe. Typically every timeframe is indicating long. However banknifty looks structurally weak due to the nature of consecutive overlapping consolidation phases. This makes one to doubt about the current elongation of the trend above which occurs recently above the consolidation phases.
Banknifty future from chart above looks like making a head and shoulder formation which is in its last leg of forming the right shoulder (which it should, to become a valid pattern). As per the chart above 19450 is tough line of resistance for bulls only once this level is sustained close basis the next up leg shall begin, till that the bank nifty is sell on rally and around 19000 there is a strong support from where it becomes a buy towards this resistance again.
Nifty on the hourly charts turned to positional buy mode yesterday with a whooping 2.98% and currently the support zone comes around 6684. And Banknifty which is currently outperforming nifty grabbed a intraday gain of 5.46% still maintaining the positional buy mode since 24th April with support coming around 13159. Reverse your position if the support breaks on the hourly charts.
Nifty on the hourly charts is in sell mode since 29th April 2014 and currently the resistance zone comes around 6766. However on contrary Banknifty still maintaining the positional buy mode since 24th April with support coming around 12794. Reverse your position if the support/resistance breaks on the hourly charts.
Nifty hourly charts is in positional sell mode since 28th April and currently the resistance zone come near 6845. However Banknifty on the hourly charts still manage the positional buy mode and currently the support zone comes near 12790 and trades very close to the support zone. Reverse your trading positions if the support/resistance zone breaks on the hourly charts.
On 6th March India VIX volatility index achieves the all time low of 12.5 since then within a short span of time scales to above 30 due to the upcoming election results which creates too much of expectation among the option traders. India VIX had risen more than 100% since 6th March 2014. And the election results are likely to be announced on 16th March till then markets are expected to be in sideways mode.