Similar to Nifty, Banknifty is on the verge of starting a new up move. A series of 1-2/1-2 waves can be seen on the chart. RSI is taking support around 50 levels. STS is sporting a hidden positive divergence. MACD has stabilized above zero line. All this suggests that the current consolidation is merely a pause before the next leg up. The hourly chart below shows the count in greater detail.
Yesterday prices rallied in the later half of the day. The wave labels [1] and [2] mark a complete 8 wave move, and satisfies all the EWP requirements. But as we know corrective patterns are obvious only when they are done with. So though I believe we may have started the wave [3] of III, we need confirmation from prices, and that means no beating around the bushes, no consolidations, just sharp moves up from these levels.
As always if we break below 9620, this [3] of III count will come under scrutiny.
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