Bank Nifty opened negative and moved in a negative to range bound manner for the first half of the session but then witnessed some strength in the latter half. Overall it moved in a consolidative manner with the pressure of bears at 41500 zones but support based buying was seen at lower zones. It formed a Doji sort of candle on daily scale and closed the day with losses of around 265 points. Now it has to hold above 41000 zones to continue the positive momentum towards 41500 and life time high of 41840 zones while on the downside support exists at 41000 and 40750 levels.
Expiry day point of view : Overall trend is likely to be volatile and now it has to hold above 41000 zones to witness an up move towards 41250 then 41500 zones while support exists at 41000 then 40750 zones
Trading Range : Expected wider trading range : 40750 to 41500/41840 zones
Option Strategy : Option traders can initiate Bull Call Ladder Spread (Buy 41200 CE, Sell 41500 and Sell 41800 CE) to play the positive with restricted upside
Option Writing : Option writers are suggested to Sell 42000/42100 Call & 39700/39800 Put in pair with double the SL
Weekly Change : Bank Nifty is up by 1.05% at 41203 on weekly basis. Bank Nifty VWAP of the week is near to 41230 levels and it is trading near same levels, indicates buying on declines but with restricted upside for expiry day point of view.
NIFTY: 17718
Nifty index opened negative and moved in a volatile way within a wider range of 175 points. It faced some weakness at higher levels but took support near 17667 zones and rebounded slightly to close with losses of around 100 points. It formed a small bodied candle on daily scale in between the broader trading range which indicates decisiveness. Even though buying interest was seen from lows but absence of follow up activity is seen at higher zones. Now, it has to hold near to 17667 zones, for an up move towards 17850 and 18000 zones whereas support exists at 17550 and 17442 zones.
Expiry day point of view: Overall trend is likely to remain volatile and now it has to hold above 17667 zones, to extend its move towards 17850 zones while on the downside support exists at 17550 then 17442 zones.
Trading Range : Expected wider trading range : 17442 to 17850/18000 zones
Option Strategy : Option traders can initiate Bear Put Ladder Spread (Buy 17700 PE, Sell 17600 PE and Sell 17450 PE) to play the downside bias
Option Writing : Aggressive Option writers can sell 18000 Call and 17250 Put in pair with double the SL due to higher volatility
Weekly Change : Nifty index is up by 1.07% at 17718 on a weekly basis. Nifty VWAP of the week is near to 17735 levels and it is trading around same levels, indicates buying on declines but upside is capped for expiry day point of view.
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