Dec 28, 2023: Out of the four strongest Indices post fall of last week, Bank Nifty (BN) seems to be the strongest one considering the overall structure of proper “Higher High (HH)” and “Higher Low (HL)” while taking an overall shape of Head & Shoulder pattern.

Bank Nifty structure is chasing Nifty Auto structure as it was 2 days ago and hence we can assume that BN will come out even more stronger as it has a wider HH and HL structure and also a wider girth for Shoulder span.

On the same hand, Nifty structure too looks good to continue the momentum of the last 2 days of swing. However point of cation is for sectors where swing of last couple of days hasn’t manged to break through the high of Dec 20, 2023 so far. More of this in the next blog.

For all the benchmark Indices, kindly note that fall of Dec 20, 2023 was one big swing down followed up with gap down on the following day of Dec 21. However on the return journey, its small small candles and hence the caution for exhaustion creeping in at some time.