Bank Nifty & Nifty Trading Strategy for 17 July’13

Nifty as on 16 July’13– 5955.25 (-75.55)    Bank Nifty as on 16 July’13– 11226.15 (-564.10)

Confession to make

Let us confess that we grossly went wrong, or market proved us wrong. Technically speaking, we had not anticipated this traumatic fall in the market, yes, we were little skeptical about further upside movement, but not even think of in dream that market will turn this way. With all courage, we sincerely apologize for our ignorance.

On Monday, Nifty gave a close of 6030, and we thought Nifty negated Hanging Man, and potential to move further, but overall scenario was not so favorable so we said, “All in all we have some good, some Ok kind of situation, so don’t be aggressive”

Bank Nifty gave us big shock by opening straight 330 points down. Few of our reader and client was long with 11900 CE option, we asked to keep stop loss of 11700 but unfortunately this sharp gap down has not shown this level. Now, we have 11175 to look for below which bank nifty can move towards 10800 levels, which we were anticipating earlier.

Nifty Trading Strategy

If, Nifty moves above 5975 then we have a reason to hold position in Nifty, once Nifty breaks today’s low then first support comes at 5895 and then 5870.  Between 5900 and 5800 Nifty can re-enter consolidation phase.

  • If, Nifty sustains above 5975 then Nifty has equal probability of moving higher (please note, we are saying equal probability not high probability).
  • Between 5900-5800 no traders zone, and below 5800 opportunity to go short.
  • If you are already holding a long position then look for open, and first 15 minutes movement, if Nifty hold above 5950 or near 5950 then hold position with stop loss of 5900. But if, Nifty opens gap down, and trade lower below 5890then it is better to accept loss and get out of the market (but that too, after 9.30-9.45). It may happen, that once you book loss and Nifty start climbing higher, but we can’t trade on hopes.

Bank Nifty Trading Strategy

We asked for 11700 stop loss, but which didn’t came and if you are holding 11900 CE, then we think, on any rise you should get out of this Call option, as there is no chance now that it can give you some upward surprises. Now, we are expecting downside momentum to continue in coming sessions. If you are aggressive trader than buy 10900 PE option of Bank Nifty on rise towards 11400.

We advise don’t try to take revenge, from market accept your defeat, today it has taken from you, tomorrow you’ll also get chance. Wait.

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