A day full of volatility…
Gap down opening and then an attempt to pull back and then the decline….
It all happened in a day’s trade!
Here’re the highlights of today’s trade:
- Following Asian Markets, Nifty opened at 11417 and it closed at 11385.
- It made an intraday high of 11449 which shows that it tried to go up.
- It made an intraday low of 11365. It has acted as support earlier.
- Bank Nifty made a perfect doji. It opened and closed just about the same levels.
- Kotak Mahindra Bank is down more than 3%. HDFC is also down 2.5%. Tata Steel is down nearly 2%.
- Sun Pharma continued its upside from 580. It went up nearly 3%.
What’s next? How to trade the market from here?
Here’re the trade ideas:
- Earnings season is nearly over. Nifty has no triggers left.
- It does not want to go down. Today, there was a perfect set up for a decline.
- However, it tried to pull back above 11450.
- So be market neutral
- Rupee will try to pull Bank stocks down and also Bank Nifty. So stay away from any major long positions.
- Keep an eye on Nifty. If it goes towards 11500, go with it.
Follow the trend. Don’t try to pre-empt the market. Accept if you are wrong and get out. If you survive, you will be able to trade tomorrow and day after…