Nifty 50 – Bank Nifty 22nd October – 26th October 2018
Weekly video on Nifty 50 & Bank Nifty. In this video, I have shown how Nifty and Bank Nifty continue to remain below 200 Day moving average and why no aggressive long positions should be attempted till price shows some form of move on the upside. I have also used Market Profile chart for Nifty and Bank Nifty to explain the overall price structure of both Nifty Indices.
Both Nifty and Bank Nifty are forming overlapping profiles which is usually first sign of bottom formation in market. This will get confirmed if Nifty does not breach its recent lows and same applies to Bank Nifty. Both also need to surpass their recent swing highs for signs of bottom formation.
Last week I had shown how FII data is now dominating the market and its prudent to follow their flow trend. This week, I have focused on Open Interest and shown how it is useful for identifying resistance in current market conditions. In recent times, Open Interest is doing a wonderful job in identifying support and resistance levels.
I then move to importance of Trading plan in Markets. I have highlighted how Stress effects our overall decision making and how this can ruin trading accounts. I have then mentioned how Trading plan helps you become more organized in market to make non-impulsive decisions. I have given details as to what all should go into your trading plans and how it helps you to counter negative emotions. In the end, I have mentioned Nifty support and resistance level along with Bank Nifty support and resistance level.