Get started

Optionsstrategies

PostMortem on BankNifty Today & Analysis of 12 APR 2023NSE: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 resistance. It was hanging around this SR zone for quite some time. Only at 13.20 did we break away from the area. And once we broke that, banknifty started another leg of rally to the next resistance of 41624. Also notice the pullback from 13.40 to 14.55 gave it good confidence as the support of 41455 held. Now why was I bearish - mostly I went with the contrarian decision to go short before the US CPI data. If you track the US markets you can see SPX is well above the bearish channel. This might give the US agencies to release a hotter CPI data as the markets will be ready to absorb it. So I applied the same logic here, if we were to crash - then the 40800 to 40700 levels looks quite possible.  95% of traders would have made money, excluding people like me as the current situation is of a break-out. And you should always stick to the main trend to keep your pockets full of cash ! What I did today is to go against the trend, try to me a little adventurous. --- 15mts trend is again favoring the bulls. I am so very sure 95% of traders will be looking out for bullish opportunity in bank nifty as the chart cries bullishness. --- On the 1hr chart, a resistance breach of 41624 is going to give bulls immense momentum. Last time we were at that level we had a double top M pattern formed i.e. on 6th and 9th March 2023. And then you know what happened - we fell all the way to the 38690 support level. So tomorrow is going to be a very serious day to have either a decisive breakout from these levels or fall back to range. The jump on 31st March has made all the difference to this chart and has given the bulls a new hope.
NSE:BANKNIFTY
by viswaram
PostMortem on BankNifty Today & Analysis of 10 APR 2023I am making some changes in the chart layout from today's report. It will be in white background going forward. This is after the feedback I got from the kindle publishing team that images with dark layout will look awkward when made into paperback. note: I will still continue to use the dark-mode chart for my trading purpose, only for the reports I will be using the white-mode NSE:BANKNIFTY opened today at 41116, it might look as a gap-up open but when the price action is considered it looks perfectly in line. The entire market was quite subdued today, the option premium at the lowest when we compare an average Monday. The good-friday holiday might have played its part, but I still think the premiums were restrictive for any option sellers to have made money today. I waited till 10.45 to find any mis-priced option, the moment I saw the premiums were all dead - I called it a day. I was just waiting on the sidelines just waiting for something to happen. From 10.10 to 11.35 NSE:BANKNIFTY tested its first support at 40880 but did not break it. The rejection came at 11.40 when a short surge helped it gain 192pts. The real move came from 12.45 to 14.15, in fact the 5mt candle at 14.15 had a bid dip. In spite of this the options premium hardly felt any threat. I am referring to OTM premiums which captures the threat more evidently. Now we have the 40880 support broken decently as the close was below that level. The next support 40704 did not break today, below which the bears would have exerted some additional pressure. --- 15mts TF does not look bearish yet, NSE:BANKNIFTY might be taking a small break before the bullish continuation.  It could also mean a short term top if the further trades are held below the current levels. Ideally this should be the case wherein the bears get some control on the market & drive up the premiums. --- 1hr was in a perfect downward trend till the moves from 27 March 2023 to 06 April 2023 ruined it. As it stands we have just entered back the top level of the descending channel. Further trades below this channel will give the bears lot of confidence to push down the bank-nifty prices & drive up the options premium. The implied volatility which is staying so low is causing all the trouble for the option sellers.
NSE:BANKNIFTY
by viswaram
Option strategy for Nifty next week here we will create an IRON CONDOR IT is an options strategy consisting of two puts (one long and one short) and two calls (one long and one short), and four strike prices, all with the same expiration date. The iron condor earns the maximum profit when the underlying asset closes between the middle strike prices at expiration. ideally nifty will stay above 17250-200 and below 17850-17900 thus a condor strategy can be applied for next week with Short selling 17250 PE & 17850 CE and making a 200-point away strike as a hedge for any uncalled event!! this will give credit and the yield would be pasted in the comment one can check sharesvalley & my username for getting in touch for more OPTIONS ARE GREAT TOOL FOR hedging
NSE:NIFTY
by pratik2358
Some tips for beginners to get started in stock marketHere are some tips for beginners to get started in the stock market and for those looking to become pro traders--------- Start with the basics: Before diving into the stock market, make sure you have a solid understanding of the fundamentals of investing, such as how the stock market works, how to read financial statements, and the different types of investment vehicles available. Set realistic goals: Determine your investment goals and risk tolerance to create a portfolio that suits your needs. Keep in mind that investing is a long-term strategy, and it's essential to have patience and discipline. Do your research: Conduct thorough research on the companies or sectors you plan to invest in. Look for companies with strong financials, a competitive advantage, and a clear growth strategy. Diversify your portfolio: Diversification is key to managing risk in the stock market. Invest in a mix of stocks, bonds, and other assets to spread your risk across different sectors and industries. Keep an eye on the market: Stay up-to-date with the latest news and trends in the stock market. Monitor your investments regularly and be prepared to make adjustments if necessary. Learn from your mistakes: Investing involves risk, and it's normal to make mistakes. Use your losses as an opportunity to learn and refine your strategy. Consider professional help: If you're new to investing or don't have the time or expertise to manage your portfolio, consider working with a financial advisor or a robo-advisor to help you make informed investment decisions. Keep emotions in check: It's easy to get caught up in the emotions of the market, but it's essential to maintain a level head and stick to your investment strategy. Have patience: Successful investing takes time and patience. Avoid chasing quick gains and focus on long-term growth. By following these tips, beginners can start building a solid foundation for investing in the stock market, while more experienced traders can refine their strategies and continue to grow their portfolios.
NSE:TCSEducation
by zeeshankra
1
PostMortem on BankNifty Today & Analysis of 06 APR 2023 ExpiryYesterday we discussed in detail the RBI MPC possibilities. If you read the article - I was expecting a hike. Surprisingly RBI maintained status quo today. Even when the inflation is at the elevated level a pause in rate hike should not be taken very lightly. An optimist would say it is an excellent decision that RBI is offering some breathing space for the financial markets. But a pessimist will see the decision today as an evident threat to the banks & lenders. In his speech RBI Governor emphasised how the global financial institutions became victim to the rate hikes carried out in advanced economies without naming SVB, Credit Suisse. If we apply the same logic here, it means the banks in our country may be having immense pressure coping up with the NPAs and issue of new loans. They may be at the verge of a breakdown that RBI decided to give them time to recoup. Inflation might have got a free hand here to run a little loose for now. It will be interesting to see how RBI reacts the next quarter. The upcoming summer season, rise in power/electricity utilization, depletion of coal reserves, less than normal monsoon are all parameters RBI takes into consideration along with the projections for crude oil. Download the RBI monetary policy report click here. --- Coming back to our NSE:BANKNIFTY analysis for today. We discussed the possibility of a pull back to the range level which should encourage the bears. Well that came early in the day. I must say we were on track to break the crucial 40880 support & the RBI surprise played spoilsport. Just after the declaration, banknifty jumped 321pts ~ 0.79% to break away from the support level. This ensured the 41500 CE which was just 700pts away from ATM spike 293%. i.e a surge of 18pts. 41000 CE went in the money and surged 208% ~ 151pts in the same time. I wanted to bring to your attention percentage wise 41500 CE gave a higher ROI vs 41000. Whereas 42000 CE did not even go past 93%. Just so that you know how to find the sweet spot ! By 11.10 the momentum faded and we started falling, and we were trading slightly negative between 13.45 to 14.25 before closing flat. I cannot really say the reversal at 11.10 came from the resistance level of 41311 as NSE:BANKNIFTY did not reach there. Even after these events the OTM of call as well as puts were totally dead today. The premiums were very low ruining any chances of arbitrage opportunities as part of weekly expiry. So personally I had a losing day! --- 15mts TF looking strong and bullish. Since it's a holiday tomorrow we would need to wait till Monday to know the next move. If the global markets fall in the next 2 sessions, then we may have a gap down. If everything stays normal then NSE:BANKNIFTY would be rejoicing the resistances it has torn apart & would like to keep moving up. --- 1hr TF has formed the perfect W pattern which leaves us with a question - will bank nifty continue to break the bearish trend it started in 14 Dec 2022 ?
NSE:BANKNIFTY
by viswaram
#HDFC Looking good for today 15 mar 23#hdfc... ✅▶️ ⛳️⛳️⛳️⛳️⛳️⛳️⛳️⛳️⛳️ Intraday as well as swing trade 🔷All levels given in charts ... we provide stock as well as option level over their 🔷 IF good potential seen then we work in options also 🔷 if activate then possible a huge movement Keep eye on this ... 🔷We take trade only when it activates... 🔻🔻🔻🔻🔻🔻🔻🔻🔻🔻 Possible to give good target 👍👍👍👍👍👍👍👍👍 TRADING FACTS
HShort
by trading_facts96