Afternoon 1:30 pm breakout strategy in Nifty and Bank Nifty involves identifying price movements at 1:30 pm and trading accordingly.
Follow the steps for the strategy:
1. Determine the trend: Before implementing the strategy, determine the trend of the market. If the market is in an uptrend, look for long opportunities, and if the market is in a downtrend, look for short opportunities.
2. Identify the resistance and support levels: Identify the key resistance and support levels in the market. These levels can be identified using technical analysis tools like pivot points, moving averages, or trend lines.
3. Monitor the price movements at 1:30 pm: At 1:30 pm, monitor the price movements of Nifty and Bank Nifty. Look for a breakout above the resistance level in an uptrend or a breakdown below the support level in a downtrend.
4. Place a trade: If there is a breakout, place a trade in the direction of the breakout. For example, if there is a breakout above the resistance level in an uptrend, place a long trade. On the other hand, if there is a breakdown below the support level in a downtrend, place a short trade.
5. Set a stop-loss: Always set a stop-loss to limit your potential losses in case the market moves against your trade.
6. Take profits: Take profits when the market reaches the next key resistance or support level.
Conclusion :
It's important to note that this strategy involves taking a position at a specific time, and there may not always be a breakout or breakdown at 1:30 pm. Therefore, it is important to use other technical indicators and analysis to confirm the trade before executing it. Additionally, it is important to have a solid risk management strategy in place to manage potential losses - NAVEEN MACHA