This is REVIEW OF BANKNIFTY for date of 13-08-2021.
How you could have get easy 200+ points buy trade in BN . This is just for education purpose only.
1) If you see since 11th August it has been taking support from the Bottom Trend-line and facing resistance from the Top Trend-line.
And it shows that it is trading in a channel pattern.
2) Now on 13-08-2021, Friday, it open above the top Trendline and as per our rule we are avoiding trading in first 15-20 minutes and wait for the proper price action near our pre-decided levels.
If you see other next 15 min candles doesn't give any strong signal as those candles were not breaking our level of 36103, there was giving no entry signal.
On 12:45PM it broke down the upper Trend-line with red candle and it was good move on the sell side.
But I was not convinced in this short trade as most of heavy weights like HDFC , HDFC BANK , Reliance etc. were showing strength.
And then if you see that sell came below till 50MA as well as the bottom trend-line and get amazing support from it.
That Red candle is at 13:30PM time (Step-1 on chart) . And this was the strong signal (Step-1 on chart) to enter in buy trade.
So the entry was in next candle (Step-2 on chart) at any stage with 36000CE option with SL of 35936 and target of 36200.
(Step-3 on chart) The next Candle already broke 21MA and now we are confirm that if in next it breaks that upper trend-line then it will be easy for us to get target at 36200. And in next two candles we achieved the Target of 36200.
Since, it was Friday and Friday factor was there, so it was sure that it will come the profit booking after 3pm and we can see 3 red candles of sell after that. This factor has to be kept in mind.
No matter what, we have to exit at our target once it hit.
Hope I made it easy to understand how buy trade worked in BANKNIFTY on 13-08-2021.
Do comment your doubt or suggestion.
Also do let me know if you had followed any other strategies in Bank nifty .
All the best and have a wonderful weekends.
Better to keep stoploss or exit if it crosses 36240.
Above 36240 it has chance that it will shoot up.
And above 36280-85 level it will be quick up move.
Sure. I will try to make it for bank nifty.
Also earlier I had published index trade setup with different scenario. You can check and let me know your comment on that type of analysis.