As can be seen from the lines in the chart, 20900 has been acting as support since last few weeks, Banknifty has touched it multiple times and reversed and on the upside resistance is at 23000.
Based on this view, 20800 PE and 23100 CE of 23rd can be sold.
Credit per lot will be 62 and 72 as of today closing but Monday opening the price will differ.
Total will be 134 points. Estimated margin will be 92k and profit would be around 2.5k which is 2.6% almost. If the view goes wrong we may need to adjust accordingly.
Hedge view will be as below. The risk is limited to 5k in this case. Buy 20500 PE and Sell 20800 PE Buy 23300 CE and Sell 23100 CE
Estimated margin is 34k and profit is 820 rs. Although it may seem small, it is 3.5% of capital deployed.
Disclaimer: I am not a SEBI Registered Analyst. This is for educational purpose. Please take position after consulting your advisor.
Comment
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can exit the pe and go up to 21500 pe sell with 21300/21200 pe buy
HDFC Bank declared results last Saturday. Icici bank and axis bank will declare results in the coming week. This will affect bank nifty.
HeGa_Investments
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Nicely explained and a safe strategy for traders....
Karu142
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BNF will make a head and shoulder pattern if reverses back from 22500 level and again come down to 21000 level. If this level breaks thanwe can see 18900 levels. Correct me if i am wrong
LazyBullear
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@Karu142, for now I don't see bnf breaking 21000 levels. I feel it has underperfomed compared to Nifty and can give a good run in the coming days
Karu142
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@LazyBullear_Puja, you are correct BNF is an underperfomer as compared to Nifty bcoz Nifty is running due to Reliance. Is there any reason which changes the sentiment of banking sector...are all the things in India running in full phase...are banks in good financial condition. If we see around us still the people are facing difficulties and everyday the corona numbers are increasing. We are not sure how much bad loans and loan defaulters may increase.
Just a view. In market there is a saying "bhav bhagwan chee". So i will respect the price action and go with it.
guddu87357169
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can you tell me how to draw option chart in tradingview ????