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Stochastic-bearish-divergence

BankNifty Bearish ViewBankNifty after a long rally from 24244 levels to 27754 looking week at higher levels. It has broken the trendline and showing bearish divergence/crossover as per stochastics and MACD on daily charts. Considering the risk reward ratio its a perfect juncture to remain on short side in BankNifty (sell on rise). Obviously hedge your positions to safeguard your portfolio. I would recommend to create a covered put which can be rolled up or averaged if it moves up higher which seems unlikely. Maximum banking heavyweights are trading near their highs and showing weakness too. Today BNF may see some retracement and technical pullback. Aggressive traders may employ the covered put if they see BNF at higher levels.
NSE:BANKNIFTYShort
by TradersVenue