The underlying allocation of BankNifty is based on the daily FREE FLOAT MARKET CAP of the banks that are key constituents of BankNifty .
So are you ignoring the above key concept? Just by running behind the price action of BankNifty and age old Indicators.
Are you able to track the outcome of events for the banks and pump the assumption in to banknifty?
BankNifty and Price change is an outcome of BankNifty Index, which ultimately is related to the underlying banks.
So My question here is, are you able to track all the changes in underlying stocks with your Indicators or Trendlines?
We have came up with a Market Internals based approach defined by Stedilmayer(Ex CBOE cheif, Head of the team that Found Black Scholes Methodology(Options Pricing Mechanism) and Inventor of Market profile) to calculate TWO Key Indicators for BankNifty .
1. BankNify Underlying Capitalized weightage - Helps you to understand how the capitalized allocation is moving based on the price action of underlying banks.
2. BankNifty Underlying Distributed - Helps you to capture the Positive and Negative Volumes of the Underlying Banks based on the Kinetic Displacement method.
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