Tuesday, 14 December 2021

Banknifty trade plan - 15th December

How did bank nifty perform today?

Bank nifty had a gap-down opening. It filled the gap and closed above VWAP. In the daily chart, BNF is bullish as per the multi-frame CCI chart, as shown below.

Banknifty chart analysis













Banknifty is trading between 37445 and 35751. 


Banknifty Future and option data




FII and Pro is net seller in the market. The market will go down if this trend continues. This significant sell position might trigger a short-covering rally in the coming expiry.37000 strikes will be critical for this week's expiry.

Astrological prediction

Tomorrow moon will be in Barani star; we might see a trending move tomorrow. 

A safe option strategy in a volatile market

The double ratio spread is a safe options strategy in a volatile market.  

BATMAN strategy payoff chart. This strategy deployed for January 2021



Range 33400  to 41500 

Option Greeks 

  • Delta 8 
  • Theta 2300
  • Vega -8567

The ratio of spread  1:3.1

Exit plan 

  • Profit  40000
  • Around mid-January 
  • Banknifty Jan future comes close to 34000 or 40000 

Adjustments 

  • The position is sensitive to volatility, so vega need to be managed to keep Vega/Theta <3
  • Hedged future to manage delta risk of the strategy.

Tomorrow banknifty prediction

Today's high and low will work as support and resistance because today was astrological pressure date. Banknifty buy can be initiatd above 36900 and sell trade can be initiated below 36800. critical times are 10:15 AM and 12:30 PM. Market closing ight be bearish.

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