Bank NIFTY- Possible Trades on 27-05-2022

Making a massive rally of more than 700 points in the second half on monthly expiry, Bank Nifty has successfully managed to break above the recent strong zone 34700-34800. While the Nifty Bank did close above 34800, one can observe price- momentum divergence in the shorter time frame and this could indicate the possibility of a correction. If the correction does happen it can be used as an opportunity for adding to long positions closer to 34700-34800 levels. The immediate upside targets or Bank Nifty can be 35360-35580-35660. For the day and next expiry we maintain the view that Bank Nifty is likely to trade between 35660- 34700. Trades can be taken closer to either of the boundaries looking for a move to the next boundary. One may profit by buying ATM Calls or Puts when the price comes near to the price boundaries mentioned above.

Levels for the day and immediate expiry

Upside levels - 35360/35580/35660

Downside levels - 35050/3492/34810/34720

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