PostMortem on BankNifty Today & Analysis of 24 MAY 2023
So we have some good news from one of the broker. Zerodha has enabled SENSEX & BANKEX futures & options trade. Those options expire every fridays. Most likely other brokers also will follow suit.
So if you plan properly you get an expiry day-trade set up on
Tuesdays - FinNifty
Wednesday - MidCapSelect Nifty (Poor liquidity)
Thursday - Nifty50 & BankNifty
Friday - Sensex & Bankex
The biggest advantage I see is that you can try your option strategies 4 out of 5 days without taking positions overnight. This will help people who are wishing to become a full time trader!
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BankNifty had a down day today, fell more than Nifty comparatively. But not enough as we all anticipated. Yesterday US markets fell - SPX -1.12%, NDQ -1.2%. Other Asian and European markets also had big cuts, and our markets were still holding its ground.
Till 11.25 Nifty was rallying not falling - how is that for a change? The options data on Nifty was showing more upside potential, but we really hit a dead-end by 11.30.
BankNifty options on the other hand was not as volatile as nifty, I was finding it difficult to gauge the direction from the options flow today. Only after 11.30, I came to know that banknifty is starting to reverse. Even then it did not spook the options premium.
The PE premiums were well within its normal wednesday range, there was no unusual spike. The bulls in India were not worried with a global meltdown? I am starting to think the bulls here are too stubborn, they may dig themselves an early grave.
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15mts shows the trading range converging, but no bias change as of now. Unless the support of 43253 is broken there will not be momentum. And you all know there is no resistance - so its an easy journey upwards. A small trigger/news/event will do to conquer new heights.
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1hr shows the wedge formation quite decently. When the range converges, what follows is a quick expansion. Guessing the direction is not that easy because we are near all time highs.
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2 days back we discussed how nifty broke the head & shoulders pattern to trade higher. What has formed today is a classic double top (M pattern). It has a higher weightage because the rejection is right at the resistance level of 18419.
So if you plan properly you get an expiry day-trade set up on
Tuesdays - FinNifty
Wednesday - MidCapSelect Nifty (Poor liquidity)
Thursday - Nifty50 & BankNifty
Friday - Sensex & Bankex
The biggest advantage I see is that you can try your option strategies 4 out of 5 days without taking positions overnight. This will help people who are wishing to become a full time trader!
---
BankNifty had a down day today, fell more than Nifty comparatively. But not enough as we all anticipated. Yesterday US markets fell - SPX -1.12%, NDQ -1.2%. Other Asian and European markets also had big cuts, and our markets were still holding its ground.
Till 11.25 Nifty was rallying not falling - how is that for a change? The options data on Nifty was showing more upside potential, but we really hit a dead-end by 11.30.
BankNifty options on the other hand was not as volatile as nifty, I was finding it difficult to gauge the direction from the options flow today. Only after 11.30, I came to know that banknifty is starting to reverse. Even then it did not spook the options premium.
The PE premiums were well within its normal wednesday range, there was no unusual spike. The bulls in India were not worried with a global meltdown? I am starting to think the bulls here are too stubborn, they may dig themselves an early grave.
---
15mts shows the trading range converging, but no bias change as of now. Unless the support of 43253 is broken there will not be momentum. And you all know there is no resistance - so its an easy journey upwards. A small trigger/news/event will do to conquer new heights.
---
1hr shows the wedge formation quite decently. When the range converges, what follows is a quick expansion. Guessing the direction is not that easy because we are near all time highs.
---
2 days back we discussed how nifty broke the head & shoulders pattern to trade higher. What has formed today is a classic double top (M pattern). It has a higher weightage because the rejection is right at the resistance level of 18419.
