Classic dow theory states that a new low in one index not confirmed by others indicates a potential trend reversal on cards. Nonconfirmation amounts to inter-market divergences that are bullish or bearish. In this situation, the new low in bank nifty today over the last few days is not confirmed by the Nifty. Even more, the outperformance of the Midcap 100 index below compared to the large cap indices shows that the broad market is not participating in the recent fall. All signs of bullish divergences. Ahead of the Union budget, the market is shaking out weak hands. The near triple bottom in Nifty is an interesting setup for the weeks ahead.
But Daily RMI is in Sell Mode, why you are bullish?
indiacharts
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@S_n_D_trader, Other reasons like + bullish divergence in mid/small caps, so broad market is not falling. Global markets are going up. Dec low is not broken in nifty or bank nifty. PCR ratios remained elevated at the start of the month. Union Budget seasonal effect. weekly averages support. strong rupee