If you compare today's intraday movements of Nifty and Banknifty, 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.
Hi, i have bought the 1 lot of 30900ce @250rs.. Could you please do i need to sell it when the market open on monday Or i need to hold it... Right now it's price is 199... Please reply...
protrader1969
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@anupama0115, Hi,Actually answer is not simple but balance is tilted in favour of bears. Due to negative news flow, some more selling might take place. On friday, Banknifty held strong because of ICICI Bank. That advantage is now priced in. IF BNF goes below 30650, the probability that it goes further down till at least 30500 is high. So watch for opening, till the time it stays above 30650, stay put. For detailed perspective, please read my post which I will post in some time.
DISCLAIMER: I am currently short on Banknifty.