Wishing Dear Readers a very very happy and prosperous and profitable new Year.
Traders should work on New Year resolutions and use the below 2 post for planning a successful and profitable 2016.
Bank Nifty in 2015 made a High of 20908 04-March-2015 which was the Top of market when RBI gave the surprise rate cut and came down till 15762 08-Sep-2015 and closing the year with a loss of 9%. We can consider 2015 as year of consolidation after Bank Nifty made hefty gains off 64 % in 2014 riding the MODI wave. Quarterly and Yearly chart of Bank Nifty are shown below.
Yearly chart have formed an Spinning Top candlestick
A Spinning Top indicates a strong fight going on between the bears and the bulls. The bulls are giving it their all, as are the bears. Nobody has won the fight yet, so the candle closes near to its open price.
If a Spinning Top appears during a bullish trend it suggests that the bulls could be losing control, and the trend could be ending. This is because until the spinning top formed the bulls had a very strong bullish trend. The spinning top suggests to traders that the bears are fighting back and the bulls are struggling to continue the bullish trend.
Next Year will be very important Year as we will be completing the 8 year cycle and will also see if Spinning top will show effect.
Quarterly chart have formed an DOJI and Inside Bar candlestick suggesting next quarter we should see good trending move in market, Breakout above 18030 and Breakdown below 16180 for a move of 1500+ points.
Bank Nifty Monthly
Bank Nifty on Monthly chart close above 17729 can see move towards 18030/18500/19300 and Breakdown only on close below 15740.
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