Friday, July 6, 2012

Bank Nifty- @Volume Hole

Following the trading plan yesterday without emotions would have been a decent 1:2 RR (Risk Reward) trade. Now BNIFTY is banging against some mighty resistance here

a) T_Zone resistance @10645, we hit 10650 and closed @10641 (in cash)
b) Trendline from Nov'10 peak and Feb'12 peak has been tested from below yesterday
c) Volume hole between 10550-10650 zone can also act as resistance as we suck in more S before the next move.

So be careful here as any view can get whipsawed, and easy part of the trade looks to be over for now.
Funny thing is how market reacted to collective central bank action on coordinated rate cuts, still not getting response from markes as most S's would have expected. We would start a "Myth Busters" section soon to expose some common held beliefs among market participant even when there are ample evidence to the contrary.
Enjoy and good luck Trading

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