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Bigbear2022
Nov 29, 2019 10:35 AM

Bank nifty options 2 Dec 2019  Short

Nifty Bank IndexNSE

Description

As discussed yesterday Bank Nifty broke decision range 32028 and went down to find support at our level 31807. Low for the day was hit at 31770 and high for the day was 32086.

Decision range for 2nd Dec
31926-31942

As we can see decision range is very close to today's close so we should expect minor afternoon volatility.

Resistance for the day
32098
Support for the day
31782

My trade
I'll be looking to short calls if bank nifty breaks the decision range and look to go long near support.
It might be worth noting that if one wants to go long at support then he/she should keep in mind that 31622 can be an extension target if bank nifty decides to break support for the day.
This additional point is due to narrow range of decision pivots.

Expectation
Range bound , sharp rally in afternoon


Comments
nagaraju1963
what will be the position on 2nd Dec 2019 of the call option 32800/32900/33000? whether we have to hold for the next two days or can we sell on Monday?.....how much time can we wait for them to sell profitably, sir?
Bigbear2022
@nagaraju1963, Hi there, There's enough tradable range on a daily basis in bank nifty, my advise will be to trade on daily level basis and don't rely on luck if you're on buy side. Nobody knows what market will do in future so we should rely on daily levels and trade accordingly. Holding options is not a profitable idea 8/10 times. 2 times will not be enough to make money over long term.
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