Trading Relief Rallies in Bear Market

Relief rallies or bounces in bear markets can be fast and furious and at times are designed by FIIs and operators to trap the clients.  A relief rally is a respite from a broader market sell-off that results in temporarily higher securities prices. Relief rallies often occur when anticipated negative news winds up being positive or less severe than expected. A relief rally is one type of bear market rally.

As of now, we are in the middle of a bear market bounce right now and bear market bounces are wild and complex to play so when we play this bounce many times our stop loss may get hit as it can be a trap. 

So, the most important thing while playing this bounce in the bear rally is that one needs to do proper position sizing.

In a bull market, you can use your full qty buy but while playing bear market bounce you are not supposed to play with full qty because sometimes this bounce may give a shallow bounce and sometimes dip.

What sort of bounce one is going to get that will get the idea once the pattern unfolds so do your position sizing well while playing it.

You can daily make a good profit using Bank Nifty Option tip and it requires a small capital of Rs 5000 to 10000 and profit can be up to 30% during intraday trading. We generally take less than 2 hours to get profit.

As of now our bear rally is fast and furious and enter in the market with a strict stop loss.