Nifty & Bank Nifty Trading Strategy as on 30 May’13

Nifty as on 29 May’13– 6104.30 (-6.95)    Bank Nifty as on 29 May’13 – 12853.20 (-96.80)

Nifty is hovering near it previous swing high, and finally settled with marginal loss. Price movement indicates minor support from lower level, but lack of strength in moving higher. Practically its minor double top of situation, as prices moved back after making a high of 6125.05 and previous day’s high is 6127.65.  Momentum stands at a place where any party can drag it further, so we have to see, who comes ahead first.

Bank Nifty, after giving Doji in previous session, remained lower in last session. Not moving higher above 12960 which is previous swing high. Momentum is also fading.

Nifty Trading Strategy

As Nifty failed to move above 6130 mark, now every trader must have kept an eye on this level, so there is a high chance to witness false breakout from this level.

Yesterday I have suggested Long Strangle which is almost trading at cost price. Keep stop loss of 20-25 and hold option strategy.

Bank Nifty Trading Strategy

Bank Nifty is loosing its steam after posting a new high. I am expecting Bank Nifty to give close below 12750, which will add confirmation to turn short in Bank Nifty. Traders can go long in Bank Nifty above 13000-13020 level, and maintain long position with trailing stop losses.

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