BANKNIFTY ANALYSIS: ALL TIME HIGH TRADENifty and Banknifty both showed weakness on technical grounds today where none of the indices could sustain the gap up opening . But for most of the part both of the Indian indices were choppy throughout the whole day. Shorting in nifty or banknifty by buying puts is not advised as the markets are not correcting sharply even after breaking their supports . Theta decay can cause loss to many traders who are buying puts in nifty or banknifty.
We know one thing and i.e. the structure of the market is still bullish and so we need to stick to high probability trading systems and one such trading system is when either of the indices breaks the all time high . As we saw earlier that nifty broke it's all time high and made newer highs but banknifty could not break its recently made all time high and also took resistance from there. That is why we should now only trade when there is a high probability trade and not when the market is stuck in a range .
Here I have given a trading setup in banknifty which activates when banknifty gives closing of 15 min or 5 min candle above its recent all time high of about 38112. It is considered from previous breakouts that banknifty atleast gives an upmove of about 300 points whenever it breaks the all time high and so these targets are also made using the same logic .
There is no fixed time for when the trade will get activated but I will update everyone on this post when it happens.
T1-38212
T2-38312
T3-38412
