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Nifty and BankNifty Context with levels for 4th August 2023

 Recap –

So bearishness in market continued today as well. Sell on rise has worked well. Actually market gave only one perfect entry in morning after some consolidation/rise and then it was favourable to trade in both Nifty and BankNifty. It was clearly mentioned that we will be only bullish after a certain level where market has not touched today.


Market Context for Tomorrow – 

Now we have got two back to back trending days on downside expecting it to consolidate and give some pullback. View is still sell on rise but go with less quantity as it can be volatile now.


Nifty50 –

If Nifty opens flat to gap up, wait for some bearish price action and then go for short trades.

If opens gap down, we need to wait for some pullback till 19400 and then plan for trading in downside. Targets will be upto PDL. Again if PDL is broken, Nifty should travel upto 19200 where a gap is pending to be filled.

We will be only bullish if PDH is broken and Nifty sustains above 19560.

Chart for reference-



 

 

BankNifty-

For tomorrow I am considering a decent 150 points zone (44730-44880) for taking trade on either side.

If BankNifty crosses this zone and sustains above, it then we can plan for some bullish trade. Targets will be 45050, 45200.

If it opens gap up and faces resistance near this zone, we can plan for a short trade. Targets will be 44500, 44300.

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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