Futures – Stock Market – Nifty & Bank Nifty for 02 April 2018
Warning: Dealing with Futures and Options is considered highly risky and there is all possibility of losing the entire capital in a single day. The recommendations provided here are only for those who understand the risks of F&O. You must undergo a risk profiling before taking positions in F&O. Proper risk management – ie stop losses and money management is more important than just technical analysis.
Calls on Nifty Futures:
The market trend is still negative and has not been able to cross the 20 day moving average. The 20 day SMA is also below the 50 day SMA. The Nifty may be pulled down to 10000 this week once again. The nearest strong support for Nifty is at 9750 levels, though the Nifty may not see 9750 levels this week. The strategy for this week will be to short Nifty at every rise – possibly the best place is the 20 day moving average. For an intraday trader, the shorts can be at an hourly chart to short at 20 hour moving averages with a eye on any of the overbought Indicators – RSI or Williams. To start with short levels of 10100, with a target of 150 to 200 points.
Buy calls can be only initiated if the Nifty closes above the 20 day moving average.
- Sell at around 10100 levels for a target of 75 to 100 points. SL can be 35 points.
- Sell if Nifty hits the 20 day moving averages – around the 10220 mark
- No Buy calls for 02 April.
Calls on Bank Nifty Futures
The Bank Nifty had a pull back from its support point at 23650 levels, however considering the bad news around Banks being embroiled in scams and NPA – the bad news will take the toll of Bank Nifty. It does not appear that Bank Nifty will cross the 20 day Moving average anytime soon. The best strategy is to short the Bank Nifty futures at any rise – overbought condition indication on RSI or Williams %R or at 20 days moving average.
- Sell at around 24350 levels for a target of 150 to 200 points
- Sell if Bank Nifty hits the 20 day moving averages – around the 24350 mark.
- If Bank Nifty is very negative at the start, wait for a pull back to 24200 levels before initiating the short
- No Buy calls for 02 April.
Disclaimer: Stock Market Nifty Prediction for Week of 02 April 2018. The market view is based on Technical Analysis and should be executed only after completing a proper risk profiling. These are trading calls and hence there is no guarantee of success. All Charts are from Zerodha – one of the best places to trade in the country!. If you have not opened an account, open now https://zerodha.com
Smrutirekha Bhoi