Bank Nifty & Nifty Technical Analysis for 26 July’13

Nifty as on 25 July’13– 5907.50 (-83.00)    Bank Nifty as on 25 July’13– 10614.00 (-106.15)

Day of expiry is over, and on expiry to expiry basis Nifty closed higher by 225 points, and if we see a range then it roughly 400 points, which is significant move, but with whole lot of whipsaws. At Way2Profits, we had anticipated such kind of move, but our anticipation was smashed in volatility. It was traders who were at mercy.

Now, again nifty settled just above 5900 level, again that crushing range of 5900-5800, where market can do time-pass, or do we see sharp fall from here. We are in support of later; it seems that at this juncture Nifty will not enter into same consolidation phase, probably for some day, but eventually it may move below this level.

CNX IT is giving small real candles from last couple of sessions, and hesitating to move and sustain higher. Although there is no immediate sell signal on it, but should keep watch on it.

Nifty Trading Strategy

From 5900 level we might see some bounce back; in that case Nifty should not move above 5980 level. If you are holding short position then hold with 5980 level. Nifty have support near 5850-5845, below which weakness will extend.

Bank Nifty Trading Strategy

As expected Bank Nifty slumped further in last session. Now, trail stop loss with 10772 (yesterday’s high). Technically, still we can expect some weakness till ~10500 levels.

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