In my trade log for May 29
I had said
1) BANK NIFTY is not leading the rise. So it may cause consolidation and ranges.
2) Overall trend is up and typical bear market rallies are fast.
3) So far this rally has not given any gaps, so next week some surprise gaps can start occurring.
For point 3, we saw the gap today. Let us see if we get more gaps in the next few trading sessions.
My trades today.
I was not very comfortable going long after a large gap right above resistance level. I did conservative trade. I sold 9700 PUT and covered it in profit. Then I stayed away from the trades.
I still hold 9900 CALL sold on Friday which I’ll hold till NIFTY crosses 9920.
I observed the following about price action today.
What I read about the price action today
1. As NIFTY approached 9900, VIX rose and there was strong resistance in the zone. I believe this zone will be tested a couple of times in intraday movement before breaking above.
2. There is not much space for long trade until we clear the resistance zone and close above 9930.
3. I think NIFTY will form a consolidation range under 9930 and try breaking out. I need to watch how low it can go to form the lower boundary of the range.
4. 9700 should be a good candidate level lower boundary.
I had said
1) BANK NIFTY is not leading the rise. So it may cause consolidation and ranges.
2) Overall trend is up and typical bear market rallies are fast.
3) So far this rally has not given any gaps, so next week some surprise gaps can start occurring.
For point 3, we saw the gap today. Let us see if we get more gaps in the next few trading sessions.
My trades today.
I was not very comfortable going long after a large gap right above resistance level. I did conservative trade. I sold 9700 PUT and covered it in profit. Then I stayed away from the trades.
I still hold 9900 CALL sold on Friday which I’ll hold till NIFTY crosses 9920.
I observed the following about price action today.
- NIFTY gaped up above 9730 and filled the previous high gap. It closed with 2.57% gain.
- BANKNIFTY outperformed and gained 3.43%
- VIX rose 1.73%
- Advance Decline ratio 40:10.
What I read about the price action today
1. As NIFTY approached 9900, VIX rose and there was strong resistance in the zone. I believe this zone will be tested a couple of times in intraday movement before breaking above.
2. There is not much space for long trade until we clear the resistance zone and close above 9930.
3. I think NIFTY will form a consolidation range under 9930 and try breaking out. I need to watch how low it can go to form the lower boundary of the range.
4. 9700 should be a good candidate level lower boundary.