Here are the charts from today.
As mentioned in the chat room, we came into the day from a balanced profile in the day before and an exit of value and range was the best trading opportunity today.
The sell signal in the NF late yesterday was confirmed as the market broke lower through the IB low and even reached 3IB.
There was a whipsaw in the BanKnifty as once again a news based move on the inflation news expectation created an opposite move of 100 points from the main trend of the day. We have to be ready for more of these whipsawing moves on Monday as the market will gain react to the RBI announcement.
The day was a neutral extreme day and once again finished at the lower end.
For the day, new intra day signals could have been taken at
a) Break of Ib low in NF and BN
b) Break of Value low in NF. ( Bn was below the value low since the open)
c) exit of range in NF and BN.
d) and finally when it was apparent that it would be a neutral extreme close, a sell could have been taken again to close in the last few minutes of the day.
For all the above, the best SL would have been VWAP as a market which gets into trend mode will rarely go above vwap.