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Published on 26/11/2020 12:37:06 PM | Source: Motilal Oswal Financial Services Ltd

Bank Nifty opened gap up and extended its move towards 30200 zones - Motilal Oswal

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BANK NIFTY : 29,196

Bank Nifty opened gap up and extended its move towards 30200 zones but failed to hold its gains at higher levels and started drifting lower. It corrected nearly 1000 points from day's high as selling pressure was seen across banking counters. It formed a Bearish Engulfing candle on daily scale and closed with losses of more than 500 points. Now it has to hold above 29000 zones to witness a bounce towards 29500 then 29800 levels while a hold below the same could see selling pressure towards 28500 zones.

Expiry day point of view:

Overall trend is likely to remain volatile with wider trading range, upside could be capped as it is trading lower to its weekly VWAP along with a price breakdown and weak Global market.

Now it has to hold above 29000 zones to witness a bounce towards 29500 then 29800 zones while immediate key support seen at 28800 then 28500 zones. A hold below 29000 zones could attract decline towards 28500 zones. Option traders are suggested to trade with nearby 29400 and 29500 Call and Bull Call Ladder Spread.

Trading Range: Expected wider trading range : 28500/28800 to 29500/29800 zones

Option Writing : Aggressive Option writers can sell 29900/30000 Call with strict double stop loss and avoid Put selling due to higher VIX levels

Weekly and Monthly Change : Bank Nifty is up by 21.19% in this series at 29196 on expiry to expiry basis as Oct 2020 series settled at 24092. Bank Nifty is trading 1300 points higher from its Series VWAP of 27900 but 300 points lower from its Weekly VWAP of 29500 levels which suggests bounce could be sold with hurdles at weekly VWAP

 

Key Data

 

Option Weekly Activity

 

NIFTY : 12,858

Nifty index opened at new record high of 13145 mark but failed to hold its gains and started correcting from initial hour of the session. It corrected more than 300 points from day's high and drifted towards 12850 zones as selling pressure was seen in latter part of the day. It formed a Bearish Belt Hold or Bearish Engulfing Candle on daily scale and negated higher lows formation after two trading sessions. Now it has to hold above 12850- 12900 zones to witness a bounce towards 13000 then 13050 levels while a hold below the same could see weakness towards 12800 then 12750 zones.

Expiry day point of view: Now it has to hold above 12850- 12900 zones to witness an up move towards 12950 then 13050 levels while on the downside major support exists at 12700 zones. Option traders are suggested to be with slightly positive bias till it holds above 12850 levels. One can Buy nearby Call like 12900, 12950 and Bull Call Ladder Spread as upside is also capped

Trading Range : Expected trading range : 12750 to 13000 zones.

Option Writing : Aggressive Option writers can sell 13150 Call with strict double stop loss and avoid Put selling

Weekly and Monthly Change : Nifty index is up by 10.18% in this series at 12858 on expiry to expiry basis as Oct series settled at 11670. Nifty VWAP of this series is near to 12550 and Index is trading almost 300 points up from VWAP levels while it is lower by 135 points from its weekly VWAP of 12995 levels which suggests emergence of selling at bounces.

 

Key Data

 

Option Weekly Activity

 

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