Virendra Kumar of CNBC-Awaaz has shared an important strategy regarding Nifty. He says that the first resistance for Nifty will be at 22,248-22,309 levels, while the big resistance is located at 22,374-22,431/22,517. At the same time, the first base will be between 21,972-22,071 and the major base will be between 21,833/21,854-21,897.
Strategy to take advantage of market fluctuations
According to Virendra Kumar, the strategy of making money from sell on Rise in the current market is proving effective. Yesterday also the selling on resistance-1 did a good job, while Base-1 gave strong support for short coverings.
- The Nifty IT sector is getting some relief, but the bank Nifty has still reached the danger zone.
- At the level of 22,300–22,400, call writers dominate, while putting the put writers in a strong position at 22,000–21,900.
- Base-1 will now be the most important level, as the market decline can be faster when it goes under it.
Important level for trading
- Shorting close to Resistance-1 (22,240-22,280) will be the best strategy.
- Base-1 will be very important due to 100 wema and put writers.
- If the level of 21,972 breaks, it is possible to fall by 21,833, although there may be a slight pullback from there.
- Short coverings will be seen when going above 22,309, which can strengthen the market.
- Up to 22,374/22,431-22,517 at the top is expected.
Strategy on bank nifty
According to Virendra Kumar, the first resistance for bank Nifty will be at 48,464-48,590 levels, while the big resistance is located at 48,931-49,034/49,217. At the same time, the first base will be between 47,813-48,089 and the larger base will be between 47,323/47,474-47,623.
Main trend in bank nifty
- Yesterday, selling on the market was effective, especially HDFC Bank showed weakness.
- PSU banks continued to decline in advance, but yesterday selling was a bit.
- The bank Nifty is still trading above the low of 27 January.
- Call writers at a strong position at 49,000 levels, while putting the put writers at 48,000–47,800 levels.
- Now the zone of 48,000-47,800 will be the most important.
Trading strategy in bank nifty
- Selling will be the best strategy to sell on a closer surge of resistance-1.
- If the level of 47,813 breaks, the market can go to 47,623–47,423.
- Strengthening or pullback is possible when the Intrade surrounds 48,590.
While trading, keep these major levels and market trends in mind, so that better decisions can be taken.
