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Nifty, BankNifty and CNXFinance (FinNifty) Context with levels for 1st August 2023

Recap –

Market started the week on a positive note. Market has shown good strength after two days closing in negative. Today Nifty gave a good rally of 150+ and both the targets were achieved given yesterday. BankNifty was lagging and managed to closed on positive side.

Market Context for Tomorrow – 

Stay with the positive trend. Nifty is moving nicely and its more tradeable compared to BankNifty or FinNifty. Market should continue the upside rally and expecting tomorrow to be sideways to bullish. Keep watch on FinNifty as tomorrow is expiry day for FinNifty and it gives good moves on expiry day which an option buyer can trade comfortably.

 

Nifty50 –

Nifty gave a good move from 19620 which I mentioned yesterday and easily captured 60+ points in options.

If Nifty opens gap up, then we need to wait for it to settle near 19760-19780 zone before planning for long trade. At these levels we will get good long trades with target upto 19860, 19900.

If Nifty opens gap down, then near 19670 we can find opportunity for going long after looking at bullish price action.

Plan for short trade only below 19620.

Chart for reference-



 

 

BankNifty-

BankNifty remained positive but not giving favourable trade. Keeping all levels of yesterday for tomorrow as well.

We can see a good rally above PDH with targets of 45900, 46000.

If it opens gap down, then it is recommended to wait for BankNifty settle near flip zone marked in chart (45470-45520) where we can get decent bullish trades.

If it goes below this zone, we can plan for some bearish trade upto PDL. Keep quantities less while taking short trade as overall trend is still bullish.

Below PDL and PWL, a good downside rally can be seen (atleast not tomorrow).

Chart for reference-

 


 

CNXFinance (Fin Nifty)-

FinNifty is moving similar to BankNifty. Given that tomorrow is expiry we can expect some good moves. My bias is for positive side.

Also Fin Nifty’s expiry day moves are good for option buyers which easily gives 2x,3x in options on at least twice in a month.

Plan for bullish trade above PDH and even if opens gap down and we get it near 20300, it will be a good place for taking long side trades. Upside targets will be 20440, 20500.

Plan for short trade only if FinNifty starts trading below 20250 at least for thirty minutes.

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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