I noticed the triple bottom on SBI on the monthly chart (August, September and October so far), and realised if this bottom holds, SBI can give a good rally.
This made me plot the following chart:
This made me plot the following chart:
This chart is the ratio of BankNifty futures to Nifty futures on hourly time frame.
At present it is trapped in the range 1.9 to 2. A breakout above 2, can take it to 2.1.
These fractions look small, but if you apply the ratio to Nifty, it becomes clear.
8000 x 1.9 = 15200
8000 x 2 = 16000
8000 x 2.1 = 16800.
It might be argued that Nifty futures will not remain static, and this ratio can still remain range bound.
However, it is worth going long in BankNifty when the ratio drops to 1.9, and hold long till the ratio hits 2, and on crossover 2.1.
This can also give good 'Pair trades' for those who do it regularly.
The historic high is 2.15 !!
7 comments:
Maan gaye sirjee - kaha kaha se kya kya soch ke laate ho - zaroor sangat ka asar hai #wicked as usual
I am sure you would be the first person to think about this :)
No way Hardik, there are many who regularly follow this ratio silently; I only posted it publicly
Thanks a lot Sir !
Regards,
AP Sir,
Thanks for the analysis.
Posting a different question here.
I trade intraday using Decision trading method . I picked that method from Nifty Nirvana.
I am able to apply concepts and trade it well.
I have huge challenge in spotting swing trades.
Could you suggest a method to do so??
DO I need to follow hourly charts and any other pointers??
Which stocks to keep a track of??
Thanks for your time
Varun
(tradingblisspoints.blogspot.com)
Varun.
Yes, for swing trades, you must get a confirmation on hourly charts; You can apply the same analysis as you do on intra day charts and see how it works on hourly charts...I feel you might get good swing trades based on this
Thanks a lot AP sir...
Will let u know the progress...
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