Saturday, 15 January 2022

Banknifty trading plan | 17th Jan to 21st Jan

BNF technical chart

Banknifty closed just below the high of 5 EMA in the daily chart. BNF closed below 5 EMA High. 

Future and option data analysis

FII is slowly increasing their short positions. FII resumed selling in the cash market also. Pro also increased sell position. The net short position of FII and Pro together is 121951.

38000 will provide support, and 38500 will work as resistance for Monday

Future Open interest reduced in last two days. PCR is near 1.02.

Astrological forecast

Monday is a full moon and Jupiter star day. 17th Market will be volatile. In most cases, a bearish view gives a good return from full moon to new moon. 

Mercury is in retrograde motion and deposited at Capricorn with Saturn. This planetary position often results in a big trend.

There might be a sharp correction in the market per planetary position.  

Important factors that might influence the market

Positive for market

  • Good collection of GST 
  • GDP for Q2 

Negative for Market

  • INR and dollar conversion
  •  Dollar index 
  •  10-year bond yield 
  •  high crude price 
  •  Rising covid 19

Banknifty trade plan before union budget

  • 38350 will work as a trend change for next week.
  • 38100, 37600, and 37000 will work as support.
  • 38600, 39000 will work as resistance.
Is banknifty bullish or bearish?

If BNF breaks Friday low, BNF might be bearish.

My trade strategy for next week

Weekly positional: I will buy 37600 put and sell double 37000 put. I will also buy 38600 call and sell 39000 call in a 1:2 ratio.

Intraday: I will sell straddle 1500 points above and below the future price. Stoploss with be 1% of margin deployed.

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