The banknifty has been moving in triangle for the last two sessions, 6th may expiry happened in consolidation and so did the friday closing.
The Paradox that we have for banknifty is, there is huge call writing done on 33000 level followed be 34000, which means that sellers see the market as bearish, But on the other hand there is continuous support of 50 and 200...
nifty option writing using strangle with hedging.
The nifty is moving in a wedge and the market is expected to be sideways (Till expiry).
still safe players can either exit the losing side if it breaks the wedge in either side or can opt for deep rollover.
Overall market sentiment is bearish but the RRR is good for the trade i.e: 1.08
The level at which Nifty is right now is a:
1). very major resistance and nifty has fallen twice from this level moreover,
2). if you look at the option chain then 15000CE Has the highest OI with heavy writing,
3). 500 point CE above is having a premium of just 7, while 500 point below PE is having OI of 49,
4). There is a double top kind of formation at...