So far our strategy to buy NIFTY near the support levels ( first near 8000 and later 8250 ) and selling the quick bounce ( first near 8400 / 8450 and recently 8600 / 8650 ) has been fairly successful. Now in next few sessions we are going to deal with bigger variable – Union budget of India for 2017 by Finance Minister Mr. Arun Jaitley.
Inexperienced traders should know that during the frenzy, no technical analysis works on lower timeframe. So one must abstain from scalping 5 min and 30 min range during such big events in order to save the account. Here we are going to draw a plan to trade budget event by giving enough room for market reaction to settle in.
Buy side Support levels in NIFTY
- ) 8400 (weak initial support )
2.) 8200 / 82500 ( next best support )
- ) 8000
Sell Side Resistance levels in NIFTY
- ) Anything above 8800 will draw a good selling pressure. But here we need to be careful about the short squeeze and need to sell as close to 9000 resistance as possible.
We always need to keep the risk in check during high volatility and options are the best way to express our bias in the market with strict risk control.
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