A small market update about what has been going on lately and what may happen later.
Ever since NIFTY BANK broke its two month long trend line upwards on 15th of June(Friday), the index has been seeing red till 20th of June(Wednesday).
Ever since that trend reversal, a bullish parallel channel has formed. It is shown with the blue dotted lines in the chart. A channel can be used as an entry pattern for the continuation of an established trend, as part of a trend following strategy.
Things to keep in mind for tomorrow: 1) If market opens close to the base of the green arrow, then we can expect a continuation of the upward channel.
2) If market opens close to the base of the red arrow then we may expect a strong correction downwards(1-2 days)
This is my idea about the current market movement.
Happy Options Trading ! :)
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Apologies for the typing error in my first comment. banknifty niftybank nifty :)
Trade closed: target reached
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For all the followers, hope you guys made good profits. :) Prices gone down in the 300s range. the market may reverse from here or continue crashing. Crash was too swift. So it might be risky for options traders now.
Cheers.
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BANKNIFTY 26400 PE showed a 3X rise. 40 to 120. Atleast 2X profits should have been booked.