Bank Nifty Trend Analysis

The bank nifty is a free float-adjusted market capitalization-weighted index. The bank nifty is a stock market index of the twenty largest banks in India. 

NIFTY is the Nifty index of the National Stock Exchange of India Ltd. It is a free-float market-capitalization-weighted index that represents the top 50 companies listed on the NSE.

Too much of anything is dangerous. This is exactly what happened in the markets. Closing at record highs, full-on bullishness, all sectors performing, retail option buyers making a lot of money, etc are signs of illogical euphoria. I don't say that markets cannot go higher, but we need to be careful with our capital. Even a small dip would be enough to hit your stop loss. 

Bank Nifty Trend

Today, on the 1st day of the series, options volumes are the highest ever in the history of options. This is very dangerous. Option selling is good, but selling only to earn theta due to low vix is a flawed concept. Low vix does not mean a range, it means stability. 3.2 cr call sellers lost money yesterday above 18400. Basically, to kill 3.2 cr shares, index futures were used only for 6.1 lacs.

So, it's time to use option strategies with some understanding and ability. Don't follow social media blindly. 

Nifty. Support is placed at 18350 and upside resistance will be at 18600

BankNifty. Support is placed at 42800 and resistance at 43500.

Derivative. Data is all-around bullish. Clearly overbought....be cautious.

Mae use of our daily Bank Nifty Trend and be a part of the team that makes a profit on a daily basis.

Banknifty options writers perspective CMP 42990 , a combined premium of 43000 1st Dec call & put the trading at 270+ 252 = 572 so as per data range for bank nifty for 1st Dec is 42990+572= 43562 upsides and downside 42990—572= 42418 , so if bank index remains between this levels options writers of 43000 call & put will try to eat as much as premium of this strike by next week thrust day, if this strike options writers are active then bank index remains in range of 42418 to 43562 till next week Thursday and most of the time it spends time between 42600 downsides and upside 43350 levels