1. The market discounts everything.i.e The market reflects all available information. Price shows the market participants mindset.
2. Indices must confirm each other. i.e In order for a trend to be established, major indices( Nifty and Bank Nifty )must confirm each other.
Friday Bank nifty has formed flagpole. A flag is a small pattern that slopes against the previous trend or a (This is the example of first tenet as it indicated bank nifty is ). Today it broke the flagpole and it is in the process of forming another flagpole. In that case it will retrace a little. Even though Nifty has shown signal on friday,
it didnt give good movement today as bank nifty is (This is the example of second tenet).
Unless Nifty and Bank Nifty move together strong trend wont form.
Supports are 18780, 18740,18670, 18550(spot). One should close their short position before expiry as prebudget rally is expected.