Nifty & Bank Nifty Trading Strategy as on 4 June’13

Nifty as on 3 June’13– 5939.30 (-46.65)    Bank Nifty as on 3 June’13– 12402.10 (-73.55)

Nifty & Bank Nifty continued moving lower also on Monday, but CNX IT index moved higher as Infosys was in lime light. I saw many analyst were blindly betting on Infosys and giving some huge targets, I don’t know whether it achievable or not, but as far Technical’s are concerned I think, Infosys has turned lower exactly from 2625 which is crucial resistance point. Below this level I expect Infosys to stay in the mixed range, above which it enters into fresh bullish territory. What I am trying to explain is, if you don’t understand the basics than just don’t jump into such high volatile stock, even though you respect Mr. Narayan Murthy.

Nifty Trading Strategy

Nifty took support near 5930 level, and finally closed slightly higher. Next important support comes at 5870, and as I mentioned in my Monday report, that I will not be surprised if Nifty takes bounce from this level. As of now weakness seems persistent, so there is high chance that Nifty can move towards 5870 level. So don’t jump into conclusions and stay with trend.

Suggested Long Strangle is already running in profit, 5900 PE posted a high of 95 and 6300 CE posted a low of 8.25. So even if traders have booked both position than they must have earned some good profit from it. On closing basis strategy closed at 86.55. Traders can book position.

Bank Nifty Trading Strategy

Bank Nifty is losing with lower pace compare to Nifty. I was expecting Bank Nifty may test 12600 level, where trader might get entry in short trade, but it did not materialize, but prices made a low of 12323.60.  I think it’s time wait in Bank Nifty, let some ideal risk reward setup to emerge.

At Way2Profits, we always give you unbiased view.

The following two tabs change content below.
We are covering Major Equity, Forex& Commodity Markets, Way2Profits filters information and streams meaningful conclusions right to your inbox. Technical Research is our realm and we fathom the depths.

Latest posts by way2profits (see all)