By Monday, Feb. 26, the stock market rally that carried major indexes out of the depths of the recent sell-off came to within 1000 points or so of the DJIA’s Jan. 26 all-time high of 26,616. The next day, on Feb. 27, a major financial publication published this headline (Forbes): U.S. Stock Market Surge – ‘The Bull Market Is Back’
Nifty FMCG index formed a classical bearish island reversal pattern during the month of July 2017 since then it is drastically under-performing nifty and moving in a sideways phase, tightly compressed for the last 5 trading months.
Bank nifty has gave breakout of falling wedge on hourly chart .11420-30 is an resistance zone as per line chart which is comfortably above 200dma. above which it can face resistance at falling red channel line. Close above 11420 will generate a buy signal in bank nifty, first sign of weakness on close below 5DSMA.
In a post earlier I have mentioned about a probable head and shoulder pattern developing in bank nifty. A similar pattern is forming in NIFTY chart.