Ok. So, I have money only to buy one futures leg after heavy losses in the last two weeks. Looking from the fundamentals, RBI nod to allow new banks should affect our existing PSU banks. Upbeat results of ICICI and Axis should keep private banks buoyant for some time. So, weekness must be exploited in PSU banks.
Look at Bank of Baroda chart. It stays below the 50d SMA for several days. It bounces slightly for expiry. This tells me that this is a relatively weak stock. With 50d SMA going southwards, the stock should see some negative movement soon. See the heavy volume downfall towards end of april expiry. This should mean a strong resistence level. So, unless this stock takes the april 26 intraday high of 774, we should see the 10d SMA pulling the 50d SMA down southwards for a while. At some place 50d SMA will find heavy volume buying again. That should be the exit point.
If for any reason, we see this crossing 774 on strong volume, we can safely claim that a base is getting made at 774. We should reverse our positions around 782 for a target of 800. We can consider 500,000 as strong volume on any day.
Position opened: Sell May Futures of Bank of Baroda at 759.25. [Resistence at 774, 804]. Target 630.
Look at Bank of Baroda chart. It stays below the 50d SMA for several days. It bounces slightly for expiry. This tells me that this is a relatively weak stock. With 50d SMA going southwards, the stock should see some negative movement soon. See the heavy volume downfall towards end of april expiry. This should mean a strong resistence level. So, unless this stock takes the april 26 intraday high of 774, we should see the 10d SMA pulling the 50d SMA down southwards for a while. At some place 50d SMA will find heavy volume buying again. That should be the exit point.
If for any reason, we see this crossing 774 on strong volume, we can safely claim that a base is getting made at 774. We should reverse our positions around 782 for a target of 800. We can consider 500,000 as strong volume on any day.
Position opened: Sell May Futures of Bank of Baroda at 759.25. [Resistence at 774, 804]. Target 630.
