Bank Nifty has formed Dark Cloud Cover candlestick pattern on daily chart which is bearish reversal signal. If we see weekly log scale chart, we find rising wedge pattern formed over a period of 12 years. Significance of the pattern can be gauged from the 3 reversal happened in the same zone in last 3-4 months. 31300-31600 is the upper range of rising wedge at this moment. Market looks more tilted towards risk as compare to reward. Lower range of support for wedge pattern comes at 25800-26200.
Stay Cautious in bullish trend.
Trade active
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Made high of 31705 in spot . Now trading at 30700. Those who are having very high risk appetite can short at CMP with stop loss above 31706 and hold for 1-2 month