Bank nifty is an index consist of 12 largest and liquid banks which are traded in NSE. So if there is good or bad news in any of these banks, banknifty fluctuates very rapidly. As Bank Nifty is very volatile, traders can make good money out of it if you follow some simple rules. In this article I will show you Easy and Profitable Intraday Trading Strategy for BankNifty.
I love trading in Bank Nifty because even in Choppy/Sideways market, It will give minimum 50 points profit. So in this strategy we will use simple indicator such as Relative Strength Index(RSI) and Moving Averages Convergence Divergence (MACD). These indicators are also available on Google Finance. So if you don’t have any charting software , you can also use Bank Nifty chart on Google Finance.
In this Bank Nifty strategy, our target will be 60 points and SL will be 40 points(You can also use higher SL as bank nifty is volatile but it’s not recommended). Accuracy ratio of this strategy is around 80% if you follow the rules strictly. Also don’t forgot to check ‘Important’ notice at the end of this article.
Settings for the Indicators:
For RSI and MACD we will use default settings. Timeframe of the Heiken Ashi candles should be 15 min.
When To Buy:
When RSI is greater than 20 and moving upwards.
Bullish Crossover of MACD.
Check the below chart for buy Signal.
When to Sell:
When RSI is less than 80 and moving downwards.
Bearish Crossover of MACD.
Check the below chart for Sell Signal.
Dont use this strategy against the banknifty trend. E.g. If the Bank Nifty is in Uptrend then dont go for short position even if all condition satisfies as it may be false signal similarly don’t go for buy position when Bank Nifty is in Down Trend.
Hope you have liked this intraday trading strategy for BankNifty. Feel free to comment if you need any help on this strategy.