End of Day Analysis 16.08.2018 – Nifty, Bank Nifty and Stocks

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…