Today Nifty & Bank Nifty Options Trading Strategy

The Maha Yagya of Ministry of Finance will commence today and thus we can say that today is the biggest annual event for stock markets. Adani FPO is fully subscribed and thus problem is behind us.

Try to stay away till the budget speech is over. This would be the last full budget of the current govt and hence has more significance. 

We have already given a strategy for budget day trading yesterday.

Our suggestion to you all is - don't expect too much. Simply try to follow what is happening in front of you. SgX shows a gap up of 80 odd points which may or may not happen. 

The overall structure is complete but a retracement is pending. Personally, I don't think 17400 lows will be broken unless we have a shock in the budget. 

Normal volatility on this day is 3%, hence not for retail option buyers. Do kot make the mistake of buying index options, it will loose premiums fast after the budget.

Nifty.  Support is placed at 17550, and resistance at 17775 and 17980.

Below 17400 no longs to be kept.

BankNifty. Sharp short covering was seen as expected. Support is placed at 39850 and resistance at 41000. 

Derivative. Data on futures is weak but positive on options. Hence market players expect volatility.

Make money using our Nifty & Bank Nifty option tips on a daily basis.The budget is middle class friendly and thus will help increase govt vote bank.

Credit Suisse stop accepting Adani bonds which can be a reason for market to fall from the top. Apparently Adani FPO issue will haunt us off and on and some cockroaches will keep coming out off and on

Caution

FII's have created short positions for Feb and March...so fall in Nifty can be violent as FII's rarely loose.

Conclusion

So, FIIs know the fact that Credit Suisse will stop accepting bonds of Adani’s group amid Hindenburg row and thus they were going short in Indian stock market.

Switzerland-based investment banking company Credit Suisse has stopped accepting bonds of Adani group as collateral for margin loans to its private banking clients, a sign that scrutiny of the billionaire Gautam Adani's finances is growing after allegations of fraud by short-seller Hindenburg Research.