Nifty & Bank Nifty Trading Strategy as on 22 May’13

Nifty as on 21 May’13– 6114.10 (-30.40)    Bank Nifty as on 21 May’13 – 13066.50 (-115)

Nifty after posting a high of 6229.45, moving lower from last two days, missed by margins to retest the highs of 6338.50. As I have mentioned in my article that momentum is not in support of rise, and that is what is happening.

It is little early to comment confidently that winds have turned and now it is time to go short on the market. Keep patience which will always pays you.

After posting a high of 13414.30 on last Monday, Bank Nifty is started sliding down. It seems that Negative Divergence is honored, and based on my observation I think Top is done, but still I prefer to stay silent.

 Nifty Trading Strategy

  • Traders can go short in Nifty below 6100-6085, with trading stop loss of around 50 points. To stay short in Nifty I prefer that Nifty should give close below this level, otherwise it is better to exit and wait  for a while.
  • Option trading will not give you desired result, so if at all you are initiating any option strategy than don’t wait for big targets.

Bank Nifty Trading Strategy

  • It is advisable to go short in Bank Nifty only below 12950, or long above 13300 (chance are less). After initiation, if prices moves higher by more than 50 points, or in closing time does not close below 12950 than better to exit from position.
  • It is very much possible that during an intraday volatility, prices spikes lower and again turn higher, but I would prefer to stick to my guns.  

You can always ask your queries in Way To Profits.


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