I do not trade BANKNIFTY much. But today's setup was great. And It turned out extremely well. It actually turned out sol well, that finally I go scared and booked profits.
I'll explain why I was lurking for this trade for last 2-3 trading sessions.
1. BANKNIFTY has been constantly under performer for the last week.
2. It was extremely oversold and there was no positive news happening.
3. BANKNIFTY for last two sessions performed better than NIFTY.
4. BANKNIFTY was near major intermediate term bottom of 17000.
5. Shorting BANKNIFTY was getting crowded trade and if everyone on the short side, then it is likely to reverse, because buyers are going fuel sellers and vice versa.
6. The momentum on downside was weakening.
7. The level 17673 offered clear entry as this level was tested for 3 times and stop loss below yesterdays low.
But I must confess, it was one lucky trade. I do not think making this kind of trade will be easier in next few days.
I'll explain why I was lurking for this trade for last 2-3 trading sessions.
1. BANKNIFTY has been constantly under performer for the last week.
2. It was extremely oversold and there was no positive news happening.
3. BANKNIFTY for last two sessions performed better than NIFTY.
4. BANKNIFTY was near major intermediate term bottom of 17000.
5. Shorting BANKNIFTY was getting crowded trade and if everyone on the short side, then it is likely to reverse, because buyers are going fuel sellers and vice versa.
6. The momentum on downside was weakening.
7. The level 17673 offered clear entry as this level was tested for 3 times and stop loss below yesterdays low.
But I must confess, it was one lucky trade. I do not think making this kind of trade will be easier in next few days.