Please read this along with my post on Nifty to get a better perspective. Numbers announced by NSO relating to GDP and other sectors shocked the market partcipants, economists and industry alike. Nobody was expecting a low figure of 5.0% on sequential basis. I would also term bank amalgamation news as bad and as far as bank nifty is considered a non-event. On charts, BNF is weaker as compared to Nifty. Nifty formed a higher high and lower low but BNF formed a lower low and lower high on daily chart with a doji candle. Such set up- continuous fall and seeming stop (read doji candle) at some level with LH & LL candle (than previous one) often results into next candle as a big red candle. So I am going for short on BNF. If it does not break friday's low of 27121 during the entire day, then I would revise my strategy, otherwise I am all for Sell on BNF. My reading- it might open gap down and fall further. Trade will have to be taken based on movement on chart. levels are given for tomorrow though clear-cut levels are difficult to predict for tomorrow as market will react on this macro-economic news in big way. As far as option chain data is concerned, it would be of no relevance tomorrow in my view. All the best. Happy trading. DISCLAIMER: I have bought BNF PUT options so I am short on BNF.
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Forgot to mention 2 more important negative news pieces- 1) Govt exhausted 77.8%of fiscal deficit annual target for FY20 in 5 months. 2) GST collection for August falls short of 1 lakh crore and us at around 98000 crore.
Awesome analysis and thanks a ton for a detailed write-up on the rationale behind the assessments. I am fairly a newbie to trading and these kind of knowledge sharing helps a great deal! Thank you, Sir!
Awesome. You are pretty accurate bro. I read all the analysis by otheres in this forum yesterday where everyone told to go Long, except you.
Keep up the good work...
protrader1969
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@ramchan10, Thanks. Can't really think why somebody would advocate going long in this market!