{"id":2677,"date":"2014-02-14T09:33:01","date_gmt":"2014-02-14T09:33:01","guid":{"rendered":"http:\/\/themenectar.com\/demo\/salient-blog\/?p=2677"},"modified":"2018-03-12T12:12:04","modified_gmt":"2018-03-12T06:42:04","slug":"day-trading-with-banknifty-and-bollingers-part-ii","status":"publish","type":"post","link":"https:\/\/unofficed.com\/theta\/day-trading-with-banknifty-and-bollingers-part-ii\/","title":{"rendered":"Day trading with BankNIFTY and Bollingers Part II"},"content":{"rendered":"

The discussion happened on yesterday live market on\u00a0#nse_entropy<\/strong>\u00a0channel in\u00a0our forum<\/a>.<\/p>\n

\"Bank<\/p>\n

So this was the trade we took last time based on 30min DMA.\u00a0\"making<\/p>\n

Today is the time we should close it if we follow the strategy.\"BankNIFTY<\/p>\n

You should check the archive of the last session if you have missed it – http:\/\/unofficed.com\/day-trading-banknifty-bollingers<\/a><\/p>\n

Bollinger Bands<\/strong><\/p>\n

It is getting squeezed telling that a major move is coming. Now which side it should be ? or it will be an ongoing consolidation?<\/p>\n

Now there is a huge chance of no major move at all and giving a long consolidation as a big move already happened.<\/p>\n

DMA<\/strong><\/p>\n

If DMA is crossed; we can witness huge downside, but it will repel the DMA. So that\u2019s it is doing currently. It is reversing from 24630-24650 levels.<\/p>\n

But it is consolidating right now there because there is no confident break as well as Fed Bank gave better than expected results.<\/p>\n

But the market has already appreciated.<\/strong><\/em><\/p>\n

So it is an indecision based on fundamentals. But we should close the future at 24690 and throw a sell limit at 24710-24720 range because in that place it is overvalued as per the charts.<\/p>\n

But<\/strong><\/p>\n

Here is where you all are doing a mistake. We are trading with BankNIFTY future which though follows BankNIFTY spot as it is the underlying; the premiums’ difference makes a significant mark.<\/p><\/blockquote>\n

So let’s say Yesbank and Yesbank futures will have different points! In that case, It had already crossed 50 DMA confidently.<\/p>\n

\"Banknifty<\/p>\n

Short at the red line with the blue line as your stop loss.\u00a0Why red line? That’s forming a resistance there!<\/p>\n

Why red line? That’s forming a resistance there!<\/strong>
\nWhy blue line? The upper band of Bollinger.\u00a0<\/strong><\/p>\n

As you see, touching the super trend will trigger a massive downside.<\/p>\n

24710 touched. Previous buy order closed; new order triggered. Now we shall be having open our BankNIFTY sell open from 24710.<\/p><\/blockquote>\n

\"Banknifty<\/p>\n

Update:\u00a0<\/strong>Today BankNIFTY trade which was sold at 24710 closed at\u00a0\u00a024384<\/p>\n

Rationale:\u00a0<\/strong>Not seeing the bearish pattern in the BankNIFTY as of now; by which I mean reversal patterns. Considering the bulls are sustaining NIFTY as of now and tomorrow is Samvat; there might be another spike before another falls comes.<\/p>\n

Net Profit:\u00a0<\/strong><\/p>\n