Nifty & Bank Nifty Trading Strategy as on 05 June’13

Nifty as on 4 June’13– 5919.45 (-19.85)    Bank Nifty as on 04 June’13– 12275.10 (-127.00)

Its continuation of down trend in Nifty & Bank Nifty. Importantly, in the prior session Nifty made a low of 5916.35 and in last session it made a low of 5910.25, and finally settled with marginal loss. This scenarios gives possibility of two scenarios, (i) Nifty made Double bottom of kind, near support levels, if it comes true than Nifty should hold above 5910 level and trade mixed in an intraday (it should not be broken).  (ii) Alternatively, continuation of downward journey, where next support is coming somewhere near 5870 level. Momentum supports later scenario and I also think Nifty will move lower. According to my analysis, moving and sustaining below 5910 and than 5870 will set next stage; otherwise Bulls will be Back in Action. Wait for day or two and we’ll come to know.

Bank Nifty moved lower and it seems that it will test 12150 levels in today’s session.

 Nifty Trading Strategy

I hope traders have booked position of Long Strangle in profits. Now, I am waiting for some more clues, because even if Nifty moves lower from current level, in that case also I see support near 5870, so I think risk-reward is not quite favorable.

Bank Nifty Trading Strategy

In last session, Bank Nifty moved higher and finally turned lower. I think negative trend will continue up to 12150, and there we’ll get some fresh clues about market, in the sense whether to turn long or short in Bank Nifty.  Aggressive Traders can intraday short bets targeting 12150 levels.

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