Market in narrow range. What's next?
A quick market update for the coming week. HDFC Bank results next week can be quite important for BANKNIFTY. On Friday U.S. markets closed at all time high and pretty much absorbed the entire Thursday's decline. As you can see above the index has been in a range and a breakout or breakdown looks quite near.
It been a good time for non-directional traders. Vix continues to get crushed and the question arises is that for how long can it keep going lower? Markets cannot consolidate for a long time. For the last six weeks Nifty has been trading between 15500-15800.
Hang Seng may know something the Nifty index probably doesn’t. The trade plan for the upcoming week continues to stay short on strangles until we see a breakout or breakdown from the BANKNIFTY channel after which can trade onto an expansion phase.
Friday's range of 35200-34850 remains sacrosanct. Any 15min candle closing on either side can be a trade with a stop-loss of not more than 60 to a 100 bucks.