Recap-
Again a sideways to
bullish days. Market has moved in very compact range with increase in
volatility. Today FinNifty tried giving a breakout but it faded as didn’t get
support from BankNifty and overall market. Nifty also tried crossing 19600 but
it is acting as resistance and sell off is coming from that particular level.
Market
Context for Tomorrow –
Levels will be same
for tomorrow as market is moving in a narrow range with no clear direction. In
this kind of market, it’s better to short at resistance and buy at support so
that stop loss will be small and probability of hitting target is more. If you will notice that VIX is increasing from last two days with increase in index which indicates that if market
is not crossing the resistance level soon then a good bearish days are coming.
My view is sideways to bullish but be prepared for both side.
Nifty50
–
For tomorrow, again
it’s better to trade above PDH and below PDL. Here we can get decent moves.
Stay cautious and it’s better to trade with lower quantities.
If Nifty breaks 19600
and sustain above it, take bullish trades with targets of 19680,19730.
If it opens gap down
and start trading below PDL, then we can see a good fall. Targets will be
19450, 19400.
Chart
for reference-
BankNifty-
If BankNifty opens gap up and it again faces some resistance near PDH,
plan for a small short trade with targets upto 44920.
If it opens gap down and starts trading below 44800, then a good fall can
come in BankNifty. Targets will be 44650, 44550.
I will take bullish trade only if BankNifty crosses PDH and sustains
there. Then at a minor pullback we can plan to take a long trade.
Chart
for reference-
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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