Recap –
After a long rally market needs to take some rest and consolidate. The exact
same thing occurred today. Market opened gap up and gave move in first one hour
after that it was just a sideways day. It’s tricky to trade on long side as
risk reward is not favourable after a gap up.
Market Context for Tomorrow –
Expect a sideways day tomorrow as well
unless we break the previous day lows in indices. The playground on upside is
open as we are already making new all-time highs but we cannot simply jump on long
side as risk is higher on upside given that market is moving in gaps and
already we have witnessed a good rally in past weeks. It has to give some
pullback and definitely it will come in this week where we can see some gap
filling. Till then it’s better to just observe the market rather than taking
random trades.
Nifty50 –
Keeping it short and simple for
tomorrow. 19300 is the level to watch.
If Nifty is taking support near this level
(at least wait for thirty minutes), we can plan for long trade with targets
upto 19350, 19400.
Below this level targets will be 19240,
19200.
BankNifty-
CNXFinance (Fin Nifty)-
In FinNifty, below 20250 we can expect
some good moves till 20100. Keep targets at every 50-60 points.
If it opens gap up, then wait for price
to sustain at 20250 before initiating any long side trade.
Chart for reference-
Abbreviations used in Chart-
PDH – Previous day High
PDL – Previous day Low
PWH – Previous Week High
PWL – Previous Week Low
PDC – Previous Day Close
NOTE: THIS BLOG IS ONLY FOR EDUCATIONAL
PURPOSES. TRADE WISELY.
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