Bank Nifty: Little to bank upon

An interesting formation is visible on Bank Nifty chart on the eve of GST bill presentation in the parliament. The index had a phenomenal run from a low of 13407 on budget day, 2016. It soon entered in an upward channel and travelled to 19158 on 18/07/2016. Bank Nifty gained 5751 points or 43% in less than six months. What a move!

Currently Bank Nifty is looking weaker than Nifty (for a change). It is moving in a range for last couple of weeks. It may have formed a double top around 19150 with a low of 18551 in between. Break below this level will confirm double top with pattern target below 18000. If that happens, the chart will witness some major developments like breaking the lower side of the channel, which currently stands around 18300.

A crucial support by means of moving average comes at 18425. A lot of things may happen on 

meeting double top target of 17950. The long awaited correction may start thereafter.

Last, but not the least, this is the level from where Bank Nifty started descending last year.
It was July 2015. 

However it gives us immense pleasure to find that the pattern has been the same since our post dated July 13, 2016. Trendlines are the most amazing study as far as Technical Analysis is concerned.

In a nutshell, currently Bank Nifty is in corrective mode. Short term trend may turn bearish below 17900. Can we buy Put here? If yes, then what could be the stop level?  

Sorry! We cannot discuss these points here. This site is dedicated to education, especially on Technical Analysis. Strategy formulation, implementation and trade management are different things altogether. But without the later, study of charts is of little or no value.  

Best of luck!!!

Disclaimer - The views here expressed and the charts shared are strictly for educational purpose and not a guideline for buy or sell. The author will not be responsible for any loss, that may occur.