There can be two possibilities
- BNF makes a trending move downside towards 50 DMA. DMA are like magnetic lines that attract price towards it when they are near. Usually, it is also seen that patterns repeat for a given script. Last time when 20 DMA was broken and the price was nearing 50 DMA it formed an . Today also it formed an . so possibility is high it may break 50 DMA.
Possible ways to trade - If trading in future sell on rise and 35250(Future price) as SL. The target can be 50 DMA . If trading in options - selling 35100 CE with SL as 35250 (future price). If buying options risky one - you may want to go for 34500 PE as 50 DMA is 34230, so if the hypothesis proves right this OTM option will become ITM and may fetch you max returns
Another possibility - based on the below factors
FIIs has bought heavily in the cash market.DII matched with selling. Fed meeting would be concluded after Indian trading hours. So it may happen that BNF remains range-bound. In that scenario, today's high and yesterday low may be taken as a range.
Possible ways to trade- Selling strangle at BNF open price may be an option and keeping 25% as SL.
this time if you would see, India VIX is going down, what would this divergence lead to ....
There is good OI build-up at 34500 PE strike price .. so its gonna be interesting
I hope you guys also would have made some money out of this