The index failed to breach 22400 consecutively for the past two sessions, making it a double top (with 24th June). Today's session witnessed mild (net) buying by the FIIs and selling by DIIs, ultimately closing the day with a small full bodied red candle. This was after a shooting star formed on the previous day. The short term outlook looks negative for banks. However, there is still a chance for bulls to get a grip on the market since the closing did not breach the trend channel.
On gap up, the usual bull rally should resume beyond 22000. Resistances lie at 22250 -- 22400. A breach of today's low upon gap up will confirm an oncoming downtrend.
On gap down, 21900 -- 22000 might be tested once but a slight selloff could lead the index to 21450 -- 20900.
I am the holding Bank nifty Option 22200 CE @ 379 /-
2 lots.Current Premium is 272.00 /-.
I am facing a loss of 4234/- .
Please guide me ?
Should I square - off or HOLD.
scalp3r240
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@abhirastogi97, with your buy price the index will have to close roughly above 22600 for you to be at a no profit/no loss scenario. The way calls have been written, it is highly doubtful if the index can cross 22400 (which forms 38.2% retracement). I would suggest, if the market keeps going down short a few lots of index future and try to cover the premium you've paid. In case the market forms a bottom at 21500, you can close the futures and average your calls to sell at a slightly higher price to minimize the loss. Good luck!
2 lots.Current Premium is 272.00 /-.
I am facing a loss of 4234/- .
Please guide me ?
Should I square - off or HOLD.