Banknifty Trade Setup for 22.08.22 with Intraday levels
With all the bad news flowing in about UK inflation data and Ukraine not willing to negotiate, banknifty took a nose dive even after having a gap up opening leading to a steady fall and finally closing below 39000. Market had an over haul of long positions and a lot of them were taken out. But the problem is that it is now filled with shorts; though not aggressively but yes. This is going to be problematic as overbought markets have a tendency to move higher before it gives the actual correction move. So, there is a high chance that we might get a short covering move Monday or Tuesday. Overall mood of the market is bearish but it would be stupidity to take blind shorts.
It would be very tough to go beyond 40000 if Nifty doesn't stay above 18000 and DOW does not sustain above 34000
Conviction neutral
Bias bearish
Trading Ideas
Long above 39000 Target 39287 (Short covering will happen only if sustains above 39287)
Short below 38855 Target 38765 (if this level is broken, 38500 can come easy)
>>Option buying
Long Position: Buy 39300 CE
Short position: Buy 38500 PE
>>Option Selling
Sell 40000CE and 38500 PE set 50 point SL in both (do not sell below 40000 as we are not in a bear market and there is a risk of short covering)
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Trading stocks, options and other securities involves risk.
The risk of loss in trading securities can be substantial.
The risk involved with trading stocks, options and other securities are not suitable for all investors.
The information presented in this educational material is not intended to be
used as the sole basis of any investment decisions, nor should it be construed
as advice designed to meet the investment needs of any particular investor.
Nothing in this course constitutes legal, accounting or tax advice, or
individually tailored investment advice.
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No advice
No recommendation
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This channel do not provide any tips/recommendations/advice
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It would be very tough to go beyond 40000 if Nifty doesn't stay above 18000 and DOW does not sustain above 34000
Conviction neutral
Bias bearish
Trading Ideas
Long above 39000 Target 39287 (Short covering will happen only if sustains above 39287)
Short below 38855 Target 38765 (if this level is broken, 38500 can come easy)
>>Option buying
Long Position: Buy 39300 CE
Short position: Buy 38500 PE
>>Option Selling
Sell 40000CE and 38500 PE set 50 point SL in both (do not sell below 40000 as we are not in a bear market and there is a risk of short covering)
-------------------------------------------
Standard Disclaimer
Trading stocks, options and other securities involves risk.
The risk of loss in trading securities can be substantial.
The risk involved with trading stocks, options and other securities are not suitable for all investors.
The information presented in this educational material is not intended to be
used as the sole basis of any investment decisions, nor should it be construed
as advice designed to meet the investment needs of any particular investor.
Nothing in this course constitutes legal, accounting or tax advice, or
individually tailored investment advice.
WE ARE NOT RESPONSIBLE FOR ANY GAINS OR LOSSES YOU MAKE.
WE ARE NOT SEBI REGISTERED.
*SEBI Mandatory Guidelines*
*Channel Disclaimer/ disclosure*
No tips
No advice
No recommendation
No PMS advisory
This channel do not provide any tips/recommendations/advice
All updates/posts/discussions are only for education and learning purpose.
Do Consult your financial advisor before taking trading or investing decisions
Group Admin or Members not responsible for any financial losses
Disclaimer/disclosure/terms and conditions applicable to all members of this channel
All rights are reserved
