Monday, 29 November 2021

Banknifty investing and trading plan for 30th November

Banknifty protected 200 MA - What Next?

Key observations before monthly expiry

  • Banknifty saw buying strength at the bottom, and it saved 200 DMA.  
  • Net short by FII and Pro reduced to 301427. 
  • PCR moved from oversold zone to neutral zone, and max pain is 36200.
  • Banknifty faced resistance at 144 ema in the daily chart. If it fails to break this resistance with volume, we might see a banknifty near or below 233 ema. 

Banknifty investing

If banknifty breaks today's low and trades for 15 minutes, will buy bankbess. This accumulation near critical support is my long-term wealth generation and covered call selling strategy. It really works wonders over the long term.

Bank nifty trade plan for tomorrow 

Banknifty is in bear grip. In the current set up no long trade is feasible as there are multiple dynamic resistances

I can go short if banknifty breaks 200 DMA to make position delta neutral as buying options at high volatility is very costly.

Update on banknifty option trading strategy

Booked profit of 2669. Squared off 36200 short straddles and moved to 36500 straddles. 

Banknifty payoff chart 

  • Range 33500 - 38800
  • Delta   11 
  • Theta 5681
  • Vega  -14800

I kept the delta as positive as my view is market might be bullish tomorrow if there is no overnight news. 

Theta and Vega are within my planned range. 

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