Analysis and Game Plan - 11 January 2019
Bank Nifty is clearly outperforming Nifty in all aspects. ICICI Bank crossed its 52 week high. Question is whether Nifty will follow.
I think Nifty will ultimately move toward its previous highs. It is consolidating at around 10700-10900 levels and breakout can be intense. Fall is not that great and pull back is intense.
Trump has kept his government shut for close to three weeks now. Any day when the shut off ends, markets will rally and so does ours.
According to reports, Trump is eager to make a deal with China.
Data wise, there are not much short added in futures and market is at the same place. Max Pain is not moving up, but PCR remains to be bullish.
Crossing and sustaining above 10870 is a good sign for break.
Bank Nifty is already bullish. Its a pattern of break and whipsaw on daily charts. It makes an up move, then traps the sellers and then again moves up. I can see consolidation further up to 27400 and it is no time to trade.
Bull run is swift as compared to corrective swings, so I won't go short at this place. Moreover Bank Nifty is en route towards its previous highs of 28338. I will look to take some bullish positions near 2350-27400. If that is achieved today then I might do so in small quantities, lets say 5 lots only and that too not for more than 20 25 points.
I won't be surprised even if we touch 27200 before giving an up move.
Conclusion: Time for me to stay at sides till I get more clarity.