Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking Ltd)
"Post the sharp upmove on Tuesday, the Nifty Bank index opened gap up in yesterday's session and continued the momentum during the first half of the trade. However, in the last couple of hours, the volatility increased significantly as the index first corrected sharply below 29800 and then recovered again to end the day tad above 30000.
In yesterday's session, the index oscillated in the range of about 470 points but ended the day near its opening levels. This has led to the formation of a 'Long Legged Doji' candlestick on the daily chart. Also, yesterday's high coincides around the 127% retracement of the recent corrective move. This pattern indicates indecision amidst a 'tug of war' between the bulls and bears and thus, yesterday's high and low could play a pivotal role in determining near term trend. As of now, the trend continues to be positive, but traders can keep a stop loss below 29790 and take money off the table if the same is breached. On the flipside, a move above 30263 will lead to a continuation of the uptrend for the target zone around 30530."