Bank Nifty & Nifty Trading Strategy for 18 July’13

Nifty as on 17 July’13– 5973.30 (+18.05)    Bank Nifty as on 17 July’13– 10971.60 (-254.55)

One more choppy session.

Nifty opened with minor gap, moved higher, and then again one more dip towards 5926 almost 65 points dip, and again recovery from that level. What does it signify? That support from lower level exist, or profit booking from higher level. Looking at intensity in fall of Bank Nifty, it is clear that Bank Nifty is was the prime reason for this sharp fall.

Technically speaking, Nifty gave Doji Star candlestick, and which also warns us that, if market gives next weak closing then it is the confirmation of weakness in the Nifty. Market behavior is extremely choppy, it is better to stay out of Nifty and Bank Nifty, as you never know, what other surprise you might get.

Nifty Trading Strategy

We think it is better to exit from Nifty, if holding any position, on any rise, and wait for better signal to reenter the market.

Bank Nifty Trading Strategy

Keep Watch On Bank Nifty, Days to decide for future course of action.

Yesterday, we mentioned that, there is no chance that Bank Nifty can move higher. Bank Nifty settled at support of 10970. Please note, if Bank Nifty has to witness treacherous fall in coming days, then it is right time. Below this level, we see extreme bearishness in Bank Nifty, which can drag Bank Nifty at least 9800 or further lower. And, if takes support here then Nifty also has a chance. We advise don’t jump into trade, give some time and look at the action, what comes next.

Keep your fingers cross.

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