Where we are: The election results had the Nifty forming a high-wave candle pattern of the range of about 430 points. Bank Nifty followed suit with a wide range of about 1,500 points. Through RSI, the momentum indicator has moved above 60 levels, there are divergences visible on weekly and monthly charts on both the indices. This could be a sign of impending weakness, considering that the price has formed indecisive candle patterns on weekly charts.
What is in ..
What could investors do: Range movements are the best times to trade Options strategies. One could sell straddle and strangle to take best advantage of range movement. Also, fresh long positions could be avoided for the time being as the risk-reward ratio may be poor in most trades, considering the choppy movement near the resistance levels. Though on the sectoral front, public sector banks have been displaying good support in price and momentum, Union Bank, Syndicate BankNSE 0. ..
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