The Friday the banknifty witnessed weakness and it was closed around 12530 level and today it opened in gap up.'Inspite of this gap up opening the banknifty was unable to move beyond 12630 level'. The day high was 627 and day low was 510 ...the whole day it was caged in this tight zone and in the afternoon session a steep recovery was seen from 12520 level to 580 but it was unable to sustain in this level or unable to cross the 12600 levels.That shows a weakness sign..As per my observation there is not much fresh buying seen as expected...when the market open in gap up about 100 points...when usually this happen the short covering panic buying or fresh buying would have come and that woud have took up the market further high's...and today it was not so?. So can we take this as one of the factors for weakness
We initiated a short in the opening around day high in 12623 and placed buy at 12567 and waited and covered...As the market was in narrow zone we made 4 attempts and 1 sl was hit.Over all it was a pleasant trade as far as the profit is concerned.
Now What we can Expect Tomorrow?
i expect the next 2 session the market may show choppines or side ways trend..and there on, we can study further or forsee the trend. The Banknifty is now weak below 12380 and attract fresh selling...if , This happen, a free fall is expected. The Nifty now strong above 6208 and weak below 6118 and a free fall may happen down 6082 level.
Trade for profit- Do not apply your mind/Ego in trading...When you start fullfilling your ego in prediction, you may fail in making profits.Do not allow your ego to curtail your profits. just follow market pulse and your trading plan with strict stoploss.