BANK NIFTY 301113

The Index found a strong support around its neckline area of 10400 and witnessed bounce back. It broke the resistance area of 10800 and consecutively closed above the said mark in a recent past. On a daily chart it just managed to close above its uptrend resistance line. On  a weekly chart too it formed a Bullish Engulfing Pattern. With other indicators too looking Bullish we expect that the Index might commence its uptrend and can kiss the 11500-11700 level in a short term. On a conservative side we recommend Bull Spread Strategy for the Index.

Buy 11200 Dec. CE at Rs.425 and Sell 11500 Dec. CE at Rs.280. 

Max. Loss per lot Rs.3625 (145*25) per lot

Max. Profit Rs.3875 (155*25) per lot

Bank Nifty 9112013

The Index is facing resistance around 11750 level. On a weekly chart it has formed a Bearish Engulfing Candlestick. On a daily chart it just found support around its uptrend line. On the downside 10650 is the major support for the index. At current level as per the daily chart all indicators have turned Negative.The index is looking tired, though we need to wait for the follow up moves. Considering all these facts we suggest that traders can try Bear Spread Option Strategy.

BANK NIFTY 4813

BANK NIFTY IS FINDING SUPPORT AT 9860 ZONE. JUST A COUPLE OF SESSIONS AGO IT FORMED A LONG-LEGGED  DOJI ON A DAILY CHART AND AS PER THE FIBO TOOL IT IS EVIDENT THAT THE INDEX IS HOLDING ITS GOLDEN RATIO. CONSIDERING THESE FACTORS WE EXPECT A SORT OF BOUNCE IN BANK NIFTY IF 9860 IS NOT BROKEN. SINCE THE OVER ALL TREND OF THE INDEX IS DOWN WE RECOMMEND TO TAKE EXPOSURE IN OPTIONS. TRADERS CAN BUY 10600 CE AT 131 WITH THE SL OF 50 TGT 350-400. MAX RISK IS RS.2025 PER LOT WHILE THE POTENTIAL GAIN IS UNLIMITED. 

BANK NIFTY 1813

BANK NIFTY TODAY FORMED A DOJI CANDLE STICK PATTERN ON A DAILY CHART AFTER A SHARP SELL OFF. IT KISSED THE RESISTANCE LEVEL OF 10200 BUT FAILED TO CLOSE ABOVE THE SAME. LOOKING AT THE RECOVERY WITNESSED IN BANK NIFTY AFTER COUPLE OF SWING LOWS IT SEEMS IT IS NOW IN DEMAND ZONE AND MAY MOVE NORTHWARD. RECOMMEND BUY ONLY ABOVE 10225 WITH STRICT SL OF 10140 FOR THE POSSIBLE UP MOVE UP TO 10530-10600 LEVEL. 

BANK NIFTY 27713

THE INDEX HAS CLOSED BELOW A VERY STRONG SUPPORT AREA AROUND 10600 LEVEL. IT IS LOOKING IN A OVERSOLD ZONE BUT STILL WE FIND NO SIGN OF RECOVERY OR REVERSAL. WE ARE OF THE OPINION THAT UNLESS AND UNTIL THE INDEX CONSOLIDATES AND MOVES BEYOND 10600 LEVEL TRADERS MUST AVOID EXPOSURE TO BANKING STOCKS. ON THE DOWNSIDE THE IMMEDIATE SUPPORT IS PLACED AROUND 10200 LEVEL. AS OF NOW BEARS ARE HAVING CLEAR UPPER HAND.

CNX AUTO : 9713

CNX AUTO INDEX POSTED LOWER HIGH BUT STOCHASTIC FORMED A HIGHER HIGH. TECHNICALLY IT IS CALLED BULL SET UP. EARLIER WE HAD DISCUSSED THE SAME IN CASE OF CAIRN INDIA AND IT SUCCESSFULLY DELIVERED. AGAIN BULL SET UP IS CLEARLY VISIBLE IN CNX AUTO CASE. THE INDEX WITNESSED A DECLINE AFTER BULL SET UP AND TESTED SUPPORT AREA AROUND 4500 LEVEL. NOW THE INDEX FORMED A DOJI. SO WE EXPECT TREND REVERSAL IN AUTO INDEX AND THE INDEX MAY COMMENCE ITS SHORT TERM UPTREND. THE POST IS FOR STUDY PURPOSE ALTERNATIVELY TRADERS CAN TAKE POSITIONS IN SELECT AUTO STOCKS TO CATCH THE MOMENTUM. 

BANK NIFTY OPTION STRATEGY

BANK NIFTY WITNESSED A SHARP CORRECTION RECENTLY PARTICULARLY DUE TO  HEAVY SELLING IN PSU BANKS. BANK NIFTY IS NOW HANGING AROUND ITS UPTREND LINE AND FINDING SUPPORT AROUND 11300 LEVEL ON A CLOSING BASIS. FURTHER ON INTRADAY BASIS IT IS FINDING SUPPORT AROUND 11000 LEVEL AND WITNESSING RECOVERY. CONSIDERING THESE FACTORS AS WELL AS MODERATE BULLISH INDICATORS WE ARE OF THE OPINION THAT BANK NIFTY MAY TRY TO KISS 11750-11800 LEVELS IN SESSIONS AHEAD. 

BUY BANK NIFTY 11800 JULY CE @ 138 SL 50 TGT 240-290