Nifty trading strategy for 18 Apr’13

Nifty as on 18 Apr’13- 5783.10    Bank Nifty as on 18 Apr’13- 12288.25

Yesterday, I partly went right and partly wrong. I was expecting Nifty to consolidate and may be weaken slightly, before moving higher again. But I proved wrong and Nifty moved sharply higher. Similar to that, I mentioned that Bank Nifty looks bullish to me, and that is the reason I was cautious even while going short on market, because Bank Nifty has high weight-age in Nifty.

Anyways, I take full responsibility of my call.

Now what, Nifty and Bank Nifty will rally? Answer is yes, Nifty is setting stage to retest recent high of 6111.  It may not achieve in 2 or 3 days, probably take some time. Tomorrow is holiday of Ram Navmi, so market will reopen on Monday.

NiftyTrading Strategy –

Go long in Nifty above 5800, please note only above 5800, below which Nifty likely to consolidate for some time. Don’t rush to buy, and don’t hesitate to give financial stop loss what you must have decided in your mind. If you want to play safe, than Buy Call option, once Nifty manage to move above 5800, you can take risk of buying next month’s call, as expiry is near.

Bank Nifty, can also retest the highs. Can go long in Bank Nifty with stop loss below 11900.

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