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

Types of trades to participate if long signal: Short lower puts (limited gains) so would need working the strike higher if we go up. Long future (full gains and losses) based on success of the signal. Both these need the same kind of margins. In the latter one trade only while in the former more trades are necessary. Long options (safe option with limited risk). Do one strike in the money if taken. These are for index. If stocks, then play leaders. SBI, Hdfc we already track and hold. But others attracted some fresh positions too for today. Kotak saw some interest late in the day. Repair is being applied to Indus Ind. So maybe some recovery here toward 900-920 area? RBL Bank is quietly getting into some short term uptrend. Take a look. Psu Bank charts still look better than Pvt. Best addition in futures OI therein (3.25%,the highest). So maybe can concentrate there as well.

The bump in Chemical & Fertiliser sector should continue. Chambal is at support OI build is of shorts. So that will help if a rise occurs. Deepak Fert is the best. PIInd is revving up as a candidate for a buy. Both Tata Chem and Aarti Ind are poised as a bottom base breakout. UPL saw short covering.

Unlike Monday data, there is good positive OI build across many sectors. So, market is getting ready for a move higher?