Bank Nifty & Nifty Trading Strategy for 09 July’13

Nifty as on 08 July’13– 5811.55 (-56.35)    Bank Nifty as on 04 July’13– 11283.30 (-151.00)

Gaps & Confusions.

One more Gap in last session. In past 6 trading sessions, Nifty remained rang bound, although with high volatility, but on closing basis, from last six sessions, it is moving clueless. Range is of 100 points upside is capped at 5900 and downside 5800. Trading such markets becomes a challenging job for traders, intraday players where anyways out of the market on day ends.

Whether we like or not, momentum is in favor of bear camp, but on closing basis, Nifty gave Hammer kind of candlestick, which means support from lower levels and that too near 5815.

Nifty Trading Strategy

Trading strategy should be clear here, below 5800 enter a short position with stop loss above 5820, with initial target of 5770. If market moves above 5835 than it can move up 5860 to cover the gap.

Net longs can only be open above 5890 levels. To confirm bearish undertone we need close 5760 levels.

Bank Nifty Trading Strategy

Bank Nifty gives small real candles with big spikes indicating high volatility. But, we see Bank Nifty moving further lower, to confirm our view Bank Nifty should stay below 11350. Fresh shorts can be open below 11275 with stop above 11350. We expect Bank Nifty testing 11000 levels.

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