TRADING RANGE (8500-8700) CONTINUES TO PERSIST IN NIFTY
MARKETS END THE WEEK FAVORING THE BULLS; TRADING RANGE (8500-8700) CONTINUES TO PERSIST IN NIFTY, TRADERS SHOULD WAIT FOR SUSTAIN BREAKOUT BEFORE ENTERING NEW POSITION.
NIFTY: Nifty is trading choppy in a narrow range (8500‐8700) from one month now and the range continues to persist. We told earlier that this range will not last longer but traders will feel the pain till prices are range bound. There is no trade in the index or can say ‘no trade zone’ as far as prices are trading in this range. We should wait for the breakout and then the confirmation of a breakout is also crucial as prices came back in this trading range after a false breakout earlier. Bank Nifty is also trading sideways in a range. Therefore, avoid trading in these two indices as far as prices are in a sideways scenario.
BANK NIFTY: Bank Nifty had an uptrend day in the markets where prices opened with a gap up near 18700 and saw an Intra -day rally which took prices near 19000. Finally, prices have closed above 18900 levels in the upper end of today’s trading range of nearly 300 points. On the daily charts, prices are still trading in a month long range with support around 18550 and resistance around 19150. Inside this range, there are periods when the market moves with a sense of direction, from the lower end of the range to the upper end, or from the upper end to the lower end. This really means a move from 18550 to 19150 or from 19150 to 18550. When we get a sense of direction we try to take a long or short trade depending on the direction. Often, the market moves within the range with absolutely NO sense of direction. The moves are almost random. When the Nifty is moving randomly, there is no need to trade. The Big Trade will come when the Index moves above 18550 or below 19150.
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