Monthly is bullish. This market is respecting 275 and there is a bounce from 260 which is from where it rallied up last time. The point is if the market were to go down why is it respecting 275? Interestingly, this phenomenon is happening for the last 4 weeks.
A look at the open interest says this market is equally biased to the upside and downside. 13.5M contracts to the upside and 13.49M contracts to the downside. There is a huge OI build up in 280PE around 5M contracts believe that market will go up.
I would like to play this via BANKNIFTY index options with a target of SPOT 25,936. If there is a breakout in ICICI and a run in BankNifty (15 min chart) then I will look to take a position to the upside using 1 min with 2 ATR as the stop and exit as SPOT reaches 25,936 or normal trailing stop loss whichever happens first.
A look at the open interest says this market is equally biased to the upside and downside. 13.5M contracts to the upside and 13.49M contracts to the downside. There is a huge OI build up in 280PE around 5M contracts believe that market will go up.
I would like to play this via BANKNIFTY index options with a target of SPOT 25,936. If there is a breakout in ICICI and a run in BankNifty (15 min chart) then I will look to take a position to the upside using 1 min with 2 ATR as the stop and exit as SPOT reaches 25,936 or normal trailing stop loss whichever happens first.
Trade closed manually:
This worked out and booked profits towards end of day at 25,895 SPOT. Used 60, 30 and 5 min charts to manage this. There is earnings today evening for ICICI and want to stand aside.
a236z