If you compare today's intraday movements of Nifty
, note that nifty
opened at 12013, went down but climbed up and closed at 12012- just 1 point below opening price and just 9 points below high of 12021. Banknifty
(BNF), however closed 100 points lower than its openning price and almost 170 points below its high. Nifty
finished as a spinning top
with open = high price whereas BNF finished as base like red candle with longer wicks at both ends. This shows that BNF is weaker than Nifty
and this might continue tomorrow. Option data is not yet conclusive for next expiry. Charts show that BNF is near high visited on 23rd September and will face resistance near 30800 levels. Since reward to risk ratio here is good, one can short at around these levels for a gain of around 300 points and if BNF goes down, Buy at support ( my choice S2, since BNF is looking weak now) for a gain of 300 points. PUT SL of around 75 points.
All the best. Happy trading.