Four Days Of Narrow Ranges Inside A Trading Range (8350-8450) Suggests Uncertainty And Consolidation
Four Days Of Narrow Ranges Inside A Trading Range (8350-8450) Suggests Uncertainty And Consolidation; Wait Patiently For Market To Move Beyond Range
NIFTY: Nifty had a choppy day in the index; where prices started near yesterdays close and made a high near 8440. Prices again found resistance there and seen a decline. After lunch prices found intraday support near 8375 and closed just below 8400 with a loss of 14.80 points. On the daily charts, Prices are trading inside a narrow range with support (8300) and resistance (8450). The range is narrowing itself as prices are now trading choppy and narrow from last four consecutive days in a hundred point trading range (8350-8450). A move beyond this level may give us a directional move. Our view remains up as prices DO CONSOLIDATE after an up move which we had witnessed recently and the breakout from consolidation would be a next trading opportunity. We may see a breakout on the upside which would be a buying opportunity for swing traders. On the other hand, prices could also break on the downside; but our view is up so we need a follow through of the breakout on the downside to change our outlook. Hence traders are advised to look for a buying opportunity
only above 8460.
BANK NIFTY: Bank Nifty had a choppy day in the markets. Prices started on a good note and made a high near 19200. However, prices found a dip after that and came lower below 19000. Eventually index closed below 19050 with minor loss of 70 points. Prices were trading narrow (18700-19100) in the index but yesterday it broke out. We had suggested a long trade in the Bank Nifty above 19150 as index had seen a breakout from its resistance of 19100. Today, prices crossed 19150 so traders should be long in the index. Trend remains up in the Bank Nifty; hence we may continue to see higher levels in the Bank Nifty; so traders should hold on to their long positions. Stop loss for this trade are as follows; If price opens below 19000 tomorrow, then apply 15-min rule, The idea is to wait for first 15 min to be over. Your stop loss will be the low made between 09:15 to 09:30 AM. If prices cross 15-min low, then exit the trade. If price opens above 19000 tomorrow, then place your stop loss at 18900.
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