Bank Nifty & Nifty Technical Analysis for 31 July’13

Nifty as on 30 July’13– 5755.05 (-76.60)    Bank Nifty as on 30 July’13– 10209.55 (-121.45)

First of all, due to some unwarranted work pressure, yesterday we couldn’t update our daily view.

In the last session, we saw a sharp fall in Nifty and Bank Nifty was in tandem with that, but although intensity was low. On lower time frame charts there is clear cut divergence in prices, and optimistic traders are betting on it, but somehow it is not unfolding.

We are seeing good support coming in Nifty near 5700 levels, break of this level can entice further selling pressure towards 5550 level. But on immediate front we should not expect this level; probably we might see some relief rally coming in, which should be utilized for going short. Please note, although on immediate front there is no clear indication of reversal, it is just expectations.

CNX IT continued to give small real candles from last couple of sessions, in such scenario taking longs is not at all advisable and can’t go short before getting signals. No option but to watch for.

Nifty Trading Strategy

We think fresh positions should be avoided at this point in time. And if you are holding short position then better to book profit or trail stop losses.

Bank Nifty Trading Strategy

If Bank Nifty falls from this levels, then immediate support coming at 10125 & 9950 levels. Here also, fresh position should be avoided, and keep trailing stop loss.

So far so Option Alphas is going good, we’ll update trades in weekends.

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