Bank Nifty: Chart set up and trading strategy
Bank Nifty
Observations
- we observe Bank Nifty trading in down trend channel
- Bullish Engulfing candlestick pattern seen in chart
Pattern gets invalidated if Bank Nifty closes below 30405
Given the set up, Strategy that may be considered
Consider selling Bank Nifty 27 May 2021 expiry
30000 Put option between 700-800 (Last traded Price 753)
The strategy has a return potential of Rs 17500- 20000 per lot
More importantly the strategy has inbuilt Stop loss protection up to 29300-29200 till 27 May which is roughly a protection of 2500 points from current levels
Take care & safe trading...!!!
Disclaimer:
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Observations
- we observe Bank Nifty trading in down trend channel
- Bullish Engulfing candlestick pattern seen in chart
Pattern gets invalidated if Bank Nifty closes below 30405
Given the set up, Strategy that may be considered
Consider selling Bank Nifty 27 May 2021 expiry
30000 Put option between 700-800 (Last traded Price 753)
The strategy has a return potential of Rs 17500- 20000 per lot
More importantly the strategy has inbuilt Stop loss protection up to 29300-29200 till 27 May which is roughly a protection of 2500 points from current levels
Take care & safe trading...!!!
Disclaimer:
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Strategy update
Bank Nifty 27 May expiry 30000 Put option CMP 278
Trust the analysis was useful
Happy trading...!!!