As with any option trade there are risks and potential drawbacks to consider before placing such a trade such as the impact of implied volatility and time decay on the value of the option contract. Therefore it is important for investors to conduct thorough research and analysis before making any investment decisions
The beast in banknifty got unleashed today, after a long gap banknifty options really started surging today! You wont believe the OTM prices went above the traded range of Wednesday, that too today being an expiry day! --- BankNifty Weekly Analysis During the current expiry week 9th to 15th June, banknifty shed 556 pts ~ 1.27%. You may not believe that 544pts i.e...
Another day went by where the last 1 hr changed the sentiment of the day. Banknifty rallied 188pts ~ 0.43% from the LOD to the HOD all in 65 mts 14.20 to 15.25. Till that point the view was bearish and open for shorting opportunities. Just check the encircled area, banknifty was struggling to go past the resistance of 44068. The set up seemed almost perfect for a...
Banknifty is trading in a bearish flat pattern so chances are high this structure is going to break for downside,,if this is happening then we can see free fall in banknifty and this fall can take banknifty towards 43900 and more lower towards 43600. MACD is already given bearish crossover,,RSI also supporting data.Market sentiment looking bearish, So if anyone...
It is happening everyday, even today. Banknifty went up 198pts in 25mts between 14.45 to 15.10, again a closing hour move! The last 1 hour moves in index is not something new now, I am still guessing many traders would have anticipated a directional move today! If we look the chart, the scope for that move was not there. What happened during the earlier part of...
Today's price action on the 3 indices NSE:NIFTY , NSE:BANKNIFTY and NSE:CNXFINANCE were conflicting due to which none of them really went anywhere. NiftyIT had a down day that doused the fire in Nifty50 to break-through the resistance of 18419. Similarly Finnifty was unable to get past 19421. From the start there was huge shorting on banknifty on CE side...
Weekly Analysis In this expiry week, 12th to 18th May banknifty has moved up only 0.61% ~ 263pts. We have hit an important milestone this week though, 0.10 pts shy of all time high - 44151.7 on 15th. Banknifty is immensely bullish considering how Nifty50 is behaving. A trader on 15th or 16th would have normally expected BN to surpass the ATH to hit new records....
Once again banknifty has outperformed Nifty50, the intraday recovery from 14.30 to close facilitated by the bulls of the banks. The price action formed today is interesting, but it is not compelling for a sentiment change to bearish as the support of 43253 is still untouched. If you look at the chart pattern today, it was a decent continuation of the trend from...
The real move came a little late today, from 12.45 to close wherein NSE:BANKNIFTY gave up 403pts ~ 0.93%. I was expecting the fall to come in the morning session - but the finnifty expiry trades would have limited this damage to a great extent. For some reason Axis Bank and IndusInd bank was quite strong today counter balancing the fall in SBI. Remember the...
Just look at the 5mts chart of NSE:BANKNIFTY today - what do you see? I see the strength of the bulls. Even though the opening was gap-down and below the support line 43253, banknifty managed to scale back by 10.45. The first attempt was rejected - rightly so because NSE:NIFTY was looking weak and the market participants would have anticipated more selling...
Signs of tiredness visible in the price action today. To start with, never expected that our indices will close in green today, even though the momentum is slowing, it is pushing up the bulls inch by inch. Nifty50 was having more positive price action vs banknifty today - that may be because there are 2 more resistance zones to go for Nifty50 to reclaim the ATH...
I am sure most of the traders would be surprised with the kind of bullish price action we saw after 10am. Since SP:SPX closed -1.58%, NDQ -1.89% yesterday - most of them including me expected NSE:NIFTY and NSE:BANKNIFTY to close in deep red today. The gap down opening at 42559 was perfectly at the support level and from there we wont only 163pts down...
For traders who are playing NSE: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...
NSE:NIFTY important resistance support areas in nifty for expiry, nifty hasnt been giving much movemnt in last 2 sessions, dont hold options for long as decay might become fast if nifty remains slow and short ranged today as well. trade light quantity and stay strong with proper risk management, if possible avoid trading current expiry options for 1st session,...
NSE:BANKNIFTY had a narrow range based trade today with a minor negative bias. Yesterday's swing low was breached by 13.40, but it does not pose a major scare yet! The pattern may look bearish on the 5mts TF, but it actually isnt. Banknifty is comparatively outperforming the Nifty50 and NiftyIT index for the last 3 days. NSE:BANKNIFTY did not have enough...
One thing I noticed this week is the variance in volatility of Nifty50 vs BankNifty. On 99 out of 100 trading days - Banknifty used to have a higher volatility than Nifty & you know what higher volatility brings to the options trading. Yes - option premium anomaly. Probably this variance was there earlier too, since I trade on BankNifty all the time - I rarely...
We will start with the weekly analysis first, that is what happened in the series 7th to 13th April. The revised format is to provide an executive summary per week. This will benefit you for further research. Since 7th April was holiday, I have taken the closing price of 6th April as starting point. We had a 2.8% ~ 1148pts rally in this week. Let me zoom out and...
NSE:BANKNIFTY held out to a perfect trend continuation from yesterday. If we notice closely the pull backs were not strong enough to break the momentum. I sincerely thought we will have a reversal or a bearish day today and had taken PE debit spreads to capitalize. If we analyze today's pattern closely NSE:BANKNIFTY took some time to take out the 41455...