Everyday we make scenarios for an upside in Bank Nifty and every day it postpones to the next day! For the record though, the closing of the day was higher but the candle for the day shows shadows on both ends. So, that is continued high uncertainty. Now, RBI policy date is reached and is that what the market is waiting for, the actual event? Here too some confusion. Some holiday declared apparently but markets are working. Is the RBI working? I know not. If it is then the policy is today. If not, can it come on Sat? I know not. Maybe Monday? Hell, what confusion. No wonder BNF is not going up.

Markets continued to idle. Our focus is on Bank Nifty because the Nifty has not shown us any signals yet that it wants to reverse. I had mentioned that we can look at it in the region of 25550-600 and that is yet to reach. The attached chart today is Bank Nifty, It should be self explanatory. Some form of price pattern and time confluence is reached at the lows of yesterday. There are two retracement legs. There are two matching legs in time. There is a pattern of base (current move consolidation) resting on a previous base. Those ought to be good enough to produce some sort of move from here. Would be looking for it today. Needs a trigger? Maybe some rumours about credit policy of tomorrow? I dont know. Lets see. But be ready to participate if triggers show up

When something gets too much touted then lay traders often fall victim to it. The TV channels were full of Banking stocks and prospects for Bank Nifty and spoke ceaselessly about it. No wonder most lay traders queued up to go long in the index and Psu banks in particular. They got their hat handed to them as prices dropped sharply and most were left nursing wounds by end of the day. Even the Bank Nifty dropped below 56k, causing problems for those that went long with the push to new highs.