Another indecisive, rangebound day allowing option writers to hog on time value for the 4th day (including weekend). However, given that the US Fed meeting is coming up, we are more likely to see volatility in the next couple of days. USDINR is trading with a negative bias but it is worthy of noticing that it is currently in an oversold zone, as per Stochastics, and has taken support @ 73.60 previously. If it manages to make a double bottom around 73.60 tomorrow, we may then see a rally in the Dollar, which would translate to a correction in our indices. As of now, BankNifty has shown resilience at immediate support levels. Its 1 wk avg lies around 30500 now, which should act as a sacrosanct support. However, all bearish views would be negated if the index breaches 31000.
LONG, if the index sustains above 30800 for targets of 31000-31250-31800. In case of a gap-down, one can go long if the index takes support around 30600.
SHORT, if the index breaches 30500 for targets of 30200-29900-29600. In case of a gap-up, one can look to short if the index shows weakness around 30800 or 31000-31050 with a trailing SL.
LONG, if the index sustains above 30800 for targets of 31000-31250-31800. In case of a gap-down, one can go long if the index takes support around 30600.
SHORT, if the index breaches 30500 for targets of 30200-29900-29600. In case of a gap-up, one can look to short if the index shows weakness around 30800 or 31000-31050 with a trailing SL.