BankNifty: Are pullbacks Bad Vol. 2

12 thg 6, 2017

In my earlier post I demonstrated a scenario on 'how to play pullbacks'. https://in.tradingview.com/chart/BANKNIFTY/82XerBoY-Are-Pullbacks-Bad-Well-may-be-not-in-a-bull-market/

As of now, I don't see the strength the way I wished it would be at 23460 levels. It is just holding that level. Which hints that there may be more downside left. Only the opening tomorrow will unfold the future. As of now we can only plan.

If tomorrow Index opens with a gap (50-100 pts. either up or down side) and shows weakness then it will trigger a sell. There are very good chances that subsequent support levels might be tested. However, at 23350 levels shorts could be covered either partially or fully. Longs could be tried if index shows some strength at this point to hunt for 23460 initially.
On the other hand if Index shows strength (either after gap up or flat opening) it would have to move strongly above 23570 and hold before touching the moon.

Never risk more than 1-2% of your capital in a single trade. Try pullback instead of breakouts.

Thanks.