For #Banknifty the levels of 25720-740 spot is the new make or break zone. A move above that can lead to positional targets of 26000 & 26200. trading below that expect to large consolidate until 25450 breaks convincingly. Options data suggest max pain at 25500 for this week. this would imply that we may likely consolidate. Good idea would be to sell a calendar call spread with limited upside risk.
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Perfectly played out the consolidation part. infact VIX fell along with theta decay to allow for some gains in options. had one small scalping opportunity with the 26740 as a stop and taking out some points. expect to keep the same strategy tomorrow until one of the range limits are broken
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The plot remains intact after 3 trading sessions. markets have consolidated and have led to significant decay in options both theta and vol decay.