PostMortem on BankNifty & Analysis of 25 APR 2023 + Finnifty EXP
For traders who are playing
BANKNIFTY
expiries on Thursdays can play the same trades on FinNifty on Tuesdays. The margin requirements are lower and now since the option premiums are staying low - the ROI in finnifty is better than banknifty.
Today was a flat day, open was at 42731 and then it was struggling to keep the momentum up. We had a gradual rise upto 42865 by 11.20 and then we started falling.
The fall itself was not convincing, only a 196pts dip & then it got bought into. This time we did not take the swing high but maxed out at 42827 @ 14.40.
The second fall was showing a bit more strength but we ran out of time, we had a dip of 220pts from 14.40 to 15.20
Even after all this banknifty still closed in green, up 42pts. The expiry on Fininfty would have played its part which we will discuss shortly.
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15 mts TF also showing a bit of tiredness after a good session yesterday. Will banknifty protect the 42576 support is what we need to look at. In spite of all the bullishness yesterday I seriously thought we might have a retest of 42576 today.
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1hr TF has made a rounded top as of now. Its not confirmation of a top as-it-is. We would need further price action to confirm that. The signs of momentum tiredness was visible in last 4 candles of today.
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Coming to the
CNXFINANCE
expiry, 18971 SR zone was active today. There were 3 tests on the 15mts TF today. I was ready with the 18900 PUT option but the support break came in very late ~ 15.15 today.
At 12.30 the same put option was active and might have continued to be in the money if not for the quick rejection candle at 12.45 wherein it recovered 0.24%. This SR zone was impacting the movements on the banknifty as well.
For the expiry traders it was a perfect day as the closing was flat and they would have got the max bang for the straddles.
BANKNIFTY
expiries on Thursdays can play the same trades on FinNifty on Tuesdays. The margin requirements are lower and now since the option premiums are staying low - the ROI in finnifty is better than banknifty. Today was a flat day, open was at 42731 and then it was struggling to keep the momentum up. We had a gradual rise upto 42865 by 11.20 and then we started falling.
The fall itself was not convincing, only a 196pts dip & then it got bought into. This time we did not take the swing high but maxed out at 42827 @ 14.40.
The second fall was showing a bit more strength but we ran out of time, we had a dip of 220pts from 14.40 to 15.20
Even after all this banknifty still closed in green, up 42pts. The expiry on Fininfty would have played its part which we will discuss shortly.
---
15 mts TF also showing a bit of tiredness after a good session yesterday. Will banknifty protect the 42576 support is what we need to look at. In spite of all the bullishness yesterday I seriously thought we might have a retest of 42576 today.
---
1hr TF has made a rounded top as of now. Its not confirmation of a top as-it-is. We would need further price action to confirm that. The signs of momentum tiredness was visible in last 4 candles of today.
---
Coming to the
CNXFINANCE
expiry, 18971 SR zone was active today. There were 3 tests on the 15mts TF today. I was ready with the 18900 PUT option but the support break came in very late ~ 15.15 today. At 12.30 the same put option was active and might have continued to be in the money if not for the quick rejection candle at 12.45 wherein it recovered 0.24%. This SR zone was impacting the movements on the banknifty as well.
For the expiry traders it was a perfect day as the closing was flat and they would have got the max bang for the straddles.
