Nifty & Bank Nifty Trading Strategy as on 29 May’13

Nifty as on 28 May’13– 6111.25 (+28.10)    Bank Nifty as on 28 May’13 – 12950.00 (-11.55)

In the last session, Nifty made a high of 6127.65 and turned back. Didn’t give us a chance to stay long.

Bank Nifty gave a Doji Candle, closed where it opened in the session.

According to my analysis, there is equal chance for Nifty to turn positive or negative, so I will not be surprised wherever it goes. If Nifty turns positive than CNX IT Index can be contributor to it, because Bank Nifty is less optimistic.

Nifty Trading Strategy

Traders can turn attention on long side above 6120-6130 level, with only 20-25 point stop loss. If not, than wait for time being.

In any case, Nifty moves and sustain above 6130 than traders can also Long Call of 6200 of next month expiry, but for which essential condition is close above this level, otherwise it is better to exit from position.

Traders can initiate Long Strangle in Nifty.

Nifty Long Strangle (Next Month Expiry)

Strike Price

Options

LTP

Lot Size

Investment

6300

CE

44

50

5900

PE

39

83

50

4150

Keep stop loss of 20-25 and hold option strategy.

Bank Nifty Trading Strategy

Bank Nifty made a high of 13016.45 and turn lower, closed where it opened. Setup in Bank Nifty is not bullish according to me, as of now it seems that, current move has full chance to prove as a Dead Cat Bounce.

Traders can go long in Bank Nifty above 13000-13020 level, and maintain long position with trailing stop losses. Even if, it Bank Nifty turns lower from current level, then also we have to wait for shorting entry.

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