Market trend: Slight weakness in the market on the first trading day of the week, know the earning strategy in Nifty-Bank Nifty
There is slight weakness in the market on the first trading day of the week. Nifty is seen slipping about 100 points below 26100. ICICI BANK, AXIS BANK, L&T and M&M have put pressure. Bank Nifty has fallen by more than 200 points. There is also a decline in midcap and small cap. In such a situation, Virendra Kumar of CNBC-Awaaz has told his special strategy for earning on Nifty and Nifty Bank.
strategy on nifty
Virendra Kumar says that the first registration for Nifty is at 26233-26277 and the biggest registration is at 26309-26337/26383. Its first base is 26065-26121 and bigger base is 25977-26031. Nifty is still moving between 20 DEMA and 26300 Call Writers Zone. Like November, FIIs are again increasing their holding towards shorts. After the policy, FIIs sold 1.2 lakh puts, 26100-26000 is now the important level. There is a concentration of call writers on 26200-26300-26400-26500 zones. The first hurdle is first registration and then bigger registration. Maximum writing is at 26000-26100. The first support base is 1 and there is also 20 DEMA on the second base. Private banks, IT and NBFCs will be in focus, momentum can be created from here. Buy every dip above Base-1 and Base-2, there is good risk-reward for longs. Above 26233-26277 is the first hurdle, if it is not crossed then it will slip, otherwise it will go to the second resistance. Currently, the highest level seen in the data is 26383. If settled below 25977, reduce risk, exit long.
strategy on nifty bank
The first registration for Bank Nifty is at 59913-60062 and the bigger registration is at 60189-60278/60344. Its first base is 59376-59533 and bigger base is 59033-59151. There has been good momentum after the policy. 59000 was the big put writers zone, 20 DEMA was important. Nifty Bank is moving above 10/20 DEMA, Private Banks are stronger than PSUs. Heavy put writing at 59500 and then 59000, 10/20 DEMA at first and second base. There has been heavy call writing on 59500 and then 60000 zones. Because FIIs are selling above it is normal to have intraday declines. Buy in the fall if found near first and second base. Strength and momentum will be created above the first resistance, check trade here. If the first registration is crossed then you can go till 60189-60278-60344 zone.