Bank Nifty Levels & Strategy for 03/Oct/2022
Updated
Dear traders, I have identified chart levels based on my analysis, major support & resistance levels. Please note that I am not a SEBI registered member. Information shared by me here for educational purpose only. Please don’t trust me or anyone for trading/investment purpose as it may lead to financial losses. Focus on learning, how to fish, trust on your own trading skills and please do consult your financial advisor before trading.
BANK NIFTY
Bank Nifty was clearly trending after RBI's policy. Every dip was bought. Those who waited patiently for RBI's policy got rewarded heavily. PCR shifted from oversold to buying zone within a day. Those who worked level by level also got benefitted heavily by reversing their trades after SL got hit on short side. Short covering lifted Bank Nifty to 1000 plus points from day's low. ATM bullish positions are build and short covering happened in ITM calls clearly indicating strength on bullish side. It will be interesting to see if relief rally will be sold again in 2nd half. WORK LEVEL-BY-LEVEL WITH STRICT SL.
BANK NIFTY SCORECARD DATED 30/SEP/2022
BANK NIFTY IS UP BY 984 POINTS
Name Price Previous Day Change % Change
Bank Nifty 38632 37648 984.20 2.61%
India VIX 19.97 21.30 -1.33 -6.27%
OPTION STATISTICS BASED ON 06/OCT/2022 EXPIRY DATA
Max OI (Calls) 41000 (Open Interest: 2106075)
Max OI (Puts) 37500 (Open Interest: 1833250)
PCR 1.08 (PCR is in buying Zone)
Bank Nifty Calls:
ATM: Long Buildup, OTM:Long Buildup, ITM:Short covering, FAR OTM:Long Buildup
Bank Nifty Puts:
ATM: Short Buildup, OTM:Short Buildup, ITM:Short Buildup, FAR OTM:Short Buildup
Shall we look for buy on dips opportunity after initial gap-up & sell on rise with strict SL at higher levels? Yes, I think so. What do you think?
Please do share your comments. Let us work & win together. Have a very happy, healthy & profitable day ahead!
BANK NIFTY
Bank Nifty was clearly trending after RBI's policy. Every dip was bought. Those who waited patiently for RBI's policy got rewarded heavily. PCR shifted from oversold to buying zone within a day. Those who worked level by level also got benefitted heavily by reversing their trades after SL got hit on short side. Short covering lifted Bank Nifty to 1000 plus points from day's low. ATM bullish positions are build and short covering happened in ITM calls clearly indicating strength on bullish side. It will be interesting to see if relief rally will be sold again in 2nd half. WORK LEVEL-BY-LEVEL WITH STRICT SL.
BANK NIFTY SCORECARD DATED 30/SEP/2022
BANK NIFTY IS UP BY 984 POINTS
Name Price Previous Day Change % Change
Bank Nifty 38632 37648 984.20 2.61%
India VIX 19.97 21.30 -1.33 -6.27%
OPTION STATISTICS BASED ON 06/OCT/2022 EXPIRY DATA
Max OI (Calls) 41000 (Open Interest: 2106075)
Max OI (Puts) 37500 (Open Interest: 1833250)
PCR 1.08 (PCR is in buying Zone)
Bank Nifty Calls:
ATM: Long Buildup, OTM:Long Buildup, ITM:Short covering, FAR OTM:Long Buildup
Bank Nifty Puts:
ATM: Short Buildup, OTM:Short Buildup, ITM:Short Buildup, FAR OTM:Short Buildup
Shall we look for buy on dips opportunity after initial gap-up & sell on rise with strict SL at higher levels? Yes, I think so. What do you think?
Please do share your comments. Let us work & win together. Have a very happy, healthy & profitable day ahead!
Note
FIIs & DIIs, Cash & F&O Buy/Sell Data Analysis Dated 30/Sep/2022FIIs: Bearish in cash & Highly Bullish in F&O
FIIs have sold in cash market for -1565 Crores and bought in derivatives market for 1267 Crores. FIIs started with bullish positions in F&O on first day of October series, it’s really a good sign.
FIIs have heavily added bullish positions in index futures (7533), stock futures (25741) contracts, index call (31041) and index put (-27528). Also added minor bearish positions in stock call and stock put options as hedged positions.
DIIs: Bullish in cash & Highly Bearish in F&O
DIIs bought in cash market for 3245 Crores. Looking at negative global cues DIIs have added bearish positions in index futures (-5684), stock futures (-14326), stock call (-15800) and index put (4000).
Pro Traders: Bullish
Pro traders have taken bearish positions in index futures (-8071) & stock futures (-4455). Heavily added bullish positions in index call (17040), index put (-108779), stock call (8272) & stock put (-4114). Pro traders have properly hedged their positions.
Retail Traders: Bearish
Retail traders have added bearish positions in stock futures (-6960), index call (-48081), index put (132307) and stock put options. They have added bullish positions in index futures (4761) & stock call (64994) options. Overall bearish.
RBI hike by 50 bps was already priced in. Post hike, Indian market had much awaited relief rally after continuous 7 days of fall. Heavy short covering had lifted Nifty by 300 plus & Bank Nifty by 1000 plus points from day's low.
We have observed call unwinding which is further indicating strength amid global issues. Retail traders should trade carefully with hedged positions at higher & lower levels to avoid getting into traps on either sides.
Please do review, analyse and share your comments as well. Many thanks for following me on twitter, liking my analysis & retweet. Let us work and win together. Wish you a very happy, healthy & profitable trading day ahead!
Disclaimer: I have analysed the data based on my limited knowledge. I am not a SEBI registered member. Information shared here for educational purpose. Please don’t trust me for trading as it may lead to financial losses. Please consult your financial advisor before trading.
Disclaimer
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