Bank Nifty is in uptrend currently, and it has been recovering nicely from lower levels of 21,000 and 21,600 on the back on a reverse head and should pattern, of high reliability. The current upside targets for Bank Nifty are 23,000 and 23,300. Traders should stay long on Bank Nifty futures with 22,500 as stop loss.
Bank Nifty moved by 2000 points from 17300 to 19300 in two days of 27-28 May 2020.
This was a big move and such a big move can be tracked and traded using a non-linear indicator like the Parabolic SAR. This indicator is not useful in rangebound markets but it can be very useful in trending marketing, like in the above chart.
The challenge is to board a rapidly moving market. Traders have to take the risk of riding the parabolic upmove and once the parabola breaks, that’s the Stop.
We had posted on Twitter in advance last week that 2000 point upmove is visible in the coming days during June 2020, but the upmove came within last week of May 2020!