BANKNIFTY view for 22nd January 2020
Option Chain Analysis indicates a sideways trend.
I am a little bullish.
There seems to be a sentiment of fear in the market and therefore this dip also might be bought out by the market.
Long above 32400:
Target 1: 32600
Target 2: 32700
Target 3: 32850
Short below 32050:
Target 1: 31850
Target 2: 31700
Target 3: 31200
I prefer not to use stop loss in banknifty because banknifty always seems to hunt for stop losses. Use levels along with the price action analysis to decide the stop loss. Eg: The MACD is showing convergence and a bullish crossover is evident in the 15 minutes chart but a red candle with a big tail is forming in the 5 minutes time frame which might take out your stop loss but when viewed in a larger pictures was just a bear trap, and you being the bull were trapped in the bear trap, which might happen all the time. A great idea could be to start looking at the last few ticks of a candle for a signal of whether stop loss hunting is taking place or genuinely stop loss has been hit.
Note: Post only for education purposes.
I am a little bullish.
There seems to be a sentiment of fear in the market and therefore this dip also might be bought out by the market.
Long above 32400:
Target 1: 32600
Target 2: 32700
Target 3: 32850
Short below 32050:
Target 1: 31850
Target 2: 31700
Target 3: 31200
I prefer not to use stop loss in banknifty because banknifty always seems to hunt for stop losses. Use levels along with the price action analysis to decide the stop loss. Eg: The MACD is showing convergence and a bullish crossover is evident in the 15 minutes chart but a red candle with a big tail is forming in the 5 minutes time frame which might take out your stop loss but when viewed in a larger pictures was just a bear trap, and you being the bull were trapped in the bear trap, which might happen all the time. A great idea could be to start looking at the last few ticks of a candle for a signal of whether stop loss hunting is taking place or genuinely stop loss has been hit.
Note: Post only for education purposes.
Komen:
Down Side all Targets Hit.
