How to trade Bank Nifty by looking at charts of heavyweight banking stocks:

Volatility is high in BNF as fewer banks have majority of the weightage. Top 6 Banking stocks have approx 92.26% weightage, details are below-

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https://t.co/2FoDdZr8zk Bank - 26.61%
2.ICICI Bank - 22.91%
https://t.co/tzIRWzWg5S - 13.82%
4.Kotak - 12.28%
5.Axis Bank - 11.44%
6.Indusind Bank - 5.20%

* Indusind Bank have low weightage but it generally gives 3-5% move so the effect is there.

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Now we have to see the charts of these 6 banks. Depending upon your trade style you should select the Timeframe. Today i'll be covering for intraday only so TF can be of 5-15 Minutes.

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Points to be noted:
A. Never be short on BNF if any of these banks is making day high continuously.
B. Never be long if any of these banks is making day low continuously.

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C. When any of them makes new high/low then BNF gives a jerk of 100-150 points easily which can hunt your SL.
D. Many a times you will find that One bank is making higher highs and other is making lower lows and rest are at break even.

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