Are you long? Bank Nifty breaks out from Cup and Handle pattern

Projections indicate that Bank Nifty has the potential to rally towards 25,900-levels in the near term.

Oct 15, 2018 01:10 IST India Infoline News Service

Volatility spiked significantly during the week as wild swings caught traders in a complex manner on the wrong foot. However, Friday's markets staged a smart comeback as Nifty found support at the 10,200 rising trendline support zone on the weekly chart.

Going forward, Nifty is likely to make an attempt to rally towards the long-term 200-DEMA of 10,750 levels. Only a crack below 10,200 on closing basis would further accentuate selling pressure.
Bank Nifty, on the other hand, has broken out from a Cup and Handle pattern on the smaller timeframe chart, which indicates that further upside is on the cards. Projections indicate that the index has a potential to rally towards 25,900 levels in the near term. On the downside, 24,990 is a crucial support zone for Bank Nifty. 

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