Banknifty trade Setup for 18.08.22 with Intraday levels

17 ago 2022

Good consolidation with up move in the second half after making a cup and a holder pattern. But if we look at US markets right now, they seem to be in deep red and the reason behind this is likely to be the UK inflation data which is worse than the estimates. Thought Dow is trading above VWAP it is still in red given the gap down opening. This scenario, where even a monkey with a demat account is sitting Long, might become problematic in case of a gap down opening. The problem would be more complicated as most people have carried this expiry options rather next expiry. So the reaction can be a bit violent if the gap up is a decent one. In case of a massive gap down below 39287, people would actually hold their positions coz that is a buying zone. Over all, market would open with a bearish sentiment, but if the up move catches fire, it is likely to continue. There are only two significant resistance till 40000 placed at 39674 and 39947


Conviction bullish
Bias bearish (inflation data driven)

Trading Ideas

Long above 39450 Target 39700-800
Short below 39094 Target 38800

>>Option buying

Long Position: Buy 39500 CE
Short position: Buy 39000 PE

>>Option Selling

Sell 39000PE and 40000 CE with SL of 20 points

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