On the day of
F&O expiry, the Bank Nifty ended well inside the positive territory
by gaining 1.75%. This up move just seems to be a pullback rally of the
broader corrective trend in the index and hence, we advise traders not
to get carried away by the up move in the index. The corrective leg from
recent high of 19100 is an 'Impulsive' down move within which the
current pullback is 'wave iv' corrective. 'Wave ii' in this corrective
move was a sharp move and as per the 'Rule of Alternation', we do not
expect any sharp up move in the BankNifty index. The 38.2% retracement
resistance of the recent corrective move is seen around 17520 and thus,
any pullback up to the resistance zone should be used as an opportunity
to create short positions in the index. The intraday support for
BankNifty is placed around 17050 and 16875 whereas resistance is seen in
range of 17480 – 17520.
Stock Tips by Stock Raja
Buy Maruti Suzuki, target 4891
Buy Tata Motors, target Rs 518
Buy ICICI Bank, Bank target of 400
Buy SBI target of Rs 670
