Nifty and Bank Nifty Technical Analysis for 18 Oct’13

Nifty as on 17 Oct’13– 6045.85 (-43.20)    Bank Nifty as on 17 Oct’13– 10336.60 (-52.70)

Talk of the town was CNX IT Index, which plummeted sharply in the day. CNX IT Index 8797.85 lost 322.45 down by more than 3.5% in an intraday session. Even Nifty and Bank Nifty remained weak, but it traded on a choppy note. Ultimately, traders who were focused on IT Index minted money, rest all were waiting for better sell level towards 6200+ as it was an ideal level to go for short.

Although Nifty gave away 43 points, but Bank Nifty was only down by 52 points, and in fact in an intraday session it tried to recover the losses, which indicates that buying is emerging at lower levels.

Nifty Trading Strategy.

There are few cues which are suggesting that Nifty is likely to find support above 6000 levels, (+ or -, 20 points). If this levels were taken away than we might see selling pressure to continue towards 5850 levels. We are using If’s because, still we like to take benefit of doubt, as we see possibility of trapping the sellers.   (Based on our understanding and knowledge, many good brokerages and institutions has already suggested Short Position to their clients, although there selling levels were close to 6220, which has not attained, so probably they might have created short position today at 6100 levels, and which has put Nifty under pressure.)

Bank Nifty Trading Strategy

Bank Nifty stands at a crucial juncture; if it breaks 10300 (future) levels, than we will all round sell-off in the market, because IT Index will add fuel in burning desire of Bear Camp. Bank Nifty on turning above 10450 levels, may invite spurt on buying side, so keep watch on it.

Keep visiting Way2Profits, for unbiased Daily view on the Nifty and Bank Nifty.

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