Bank Nifty Trading – Apr2018

Bank Nifty is a highly sensitive index with sharp response to various domestic and international events, especially those linked to interest rates, currencies, international trade, etc. Its has nearly 2x beta compared to Nifty index. Feb2018 and Mar2018 were bad for Bank Nifty and it had sharp correction from 27,000 to 23,500 – PNB scam, and interest rate hikes in the US and ICICI Bank issue concerning MD/CEO.

Observe this intraday chart (5 min) carefully for valuable lessons. The lessons will be useful/relevant for larger timeframes of 15-30-60 min also.

  1. Downside Risk increases below 100 LSMA
  2. Downside Risk increases rapidly when 20 LSMA and 50 LSMA cut below 100 LSMA
  3. Fall stops/reverses on closing above 50 LSMA

 

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Global Markets Update – 07Feb2018

S&P500 Futures 2,681.00 -13.25 -0.49%
Nasdaq Futures 6,623.75 -30.00 -0.45%
Dow Jones 30 24,912.77 +567.02 +2.33%
SmallCap 2000 1,506.87 +14.30 +0.96%
S&P500 VIX 30.21 +0.23 +0.77%
DAX 12,480.38 +87.72 +0.71%
US Dollar Index 89.73 +0.21 +0.23%
Bitcoin Futures 8,180 +360 +4.60%

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USD vs Euro chart – Year 2017

The US Dollar has under performed other currencies like Euro, GBP, Yen.
In hindsight, the main forex trade of year 2017 was long EUR/USD.

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