Bank Nifty & Nifty Technical Analysis for 22 Aug’13

Nifty as on 21 Aug’13– 5302.55 (-98.90)    Bank Nifty as on 21 Aug’13– 9264.40 (+45.45)

Whom to Blame, whom to Curse?

By looking at last sessions price action, only one word comes in our mind is Oh My God. What a reverse, it was a day of classic Bull Trap. There are many fundamental factors which are ruling over the market, but practically, we don’t have anyone to blame or curse, as markets will always be like this, and will remain like this.

When market opened everybody thought, including us, that oh no, we lost the opportunity man, and after looking at humongous rise in Bank Nifty we thought it is better to wait and watch, because at such price high we can’t ask our subscribers to enter, and honestly we also had a feeling that, possibly we might miss the rally, but we stopped ourselves. In the morning only we though, we are done for the day, now there is nothing to take away from this, and market stuck in the range, which was obvious, then market moved to cover the gap, which was also obvious, but what happened next was unusual and which was not expected at all. We know, this market has smashed many bulls and many bears in an intraday session only, unfortunate.

Nifty Trading Strategy

At this point in time we don’t see any safe bet, because you never know, how market can open in the morning. Any trading call will involved high risk, so it is better to play with neutral option strategy like Long Strangle or Long Straddle, problem with this strategy is now time is not in your favor, so it may hurt you.

Bank Nifty Trading Strategy

Similarly, in Bank Nifty we advise not to stay with naked position, better to apply hedge.

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