NIFTY AND BANK NIFTY ANALYSIS FOR 07 NOV 2022

06 NOV 2022 2100 Hrs
1. US , Europe & Asia is looking strong.
2. India VIX is at 15.5. So volatility is low and premium will be less.
3. SGX Nifty is indicating 98 points up @ 18207 Spot. That means Bank Nifty will be around 41500 levels which is the resistance area.
4. The trend in the nifty and bank nifty has been to gap up and slowly drift down to support or pivot levels till 1430 Hrs and then trend up 30 - 40 points.
5. This gives less opportunity for option buyers as there will be more decay than momentum in the option price. This will be more suitable for option sellers than buyers.
6. HDFC twins are looking strong. ICICI Bank is consolidating and Reliance is looking strong.
7. IT majors are under performing.
Verdict
1. Nifty looks stronger than Bank nifty.
2. Bank Nifty may catch up with nifty as hdfc and icici banks are due for a bounce back.
3. If Bank Nifty and nifty opens as per SGX nifty then it is better to wait for a pull back and take trade.
4. If nifty and bank nifty drift down, then there will no trades for option buyers.
5. Selling ATM options straddle post consolidation may fetch a decay of 10 -15 Rs.
6. HDFC Twins and ICICI bank can be traded long for intraday.
THE VIEWS ARE PERSONAL. PLEASE USE IT TO ENHANCE YOUR DECISION MAKING.