BANKNIFTY MASTER PLAN from 11th Feb, 2019 (Monday):
Guys ... let's just keep it very simple. Banknifty is proving to be a puzzle for many these days. Traders are finding it really hard to deal with banknifty weekly options. This is mainly because it's moving in a broader range and not crossing it at all. Hence, let's not make things more complex.
Let's just try to formulate our plan on the basis of whatever we know till now:-
-- It is now confirmed that spot level of 27500 is one end of this broader range within which banknifty is roaming. It's acting like an end to the long highway. Therefore, 27500 (+ / - 50 points) is a crucial zone and a big resistance for the time being. Crossing it decisively will open new horizon.
-- Now, considering the previous make or break level of 27000 as the new crucial support (since it was the resistance which got breached decisively few sessions ago), we can conclude that the current range of 27000 to 27500 is now what we need to focus on and deal with.
-- Now the big problem for us (day traders) is the continuous melting of weekly options within this range of 27000 to 27500. This is proving to be a big challenge for us. But there are some ways by which we can deal with heavy premium erosion:-
1. From what I have noticed these days is that if we enter around 2 PM or 2:30 PM, then there is a better chance of making bigger profits. By 2 PM or 2:30 PM, option premiums become much cheaper for that particular day and the market is ready to show a decisive (and quick) move. However, there is every possibility of hitting the stop loss too. Hence, always enter after double confirming the intention of market.
2. Need to focus on levels these days. Resistance may become support if breached. Similarly, support may become resistance if breached.
3. Never ever trust O/I data. It can change within minutes. Always try to gauge the intention of market. In other words, try to listen what market is trying to say.
4. Never enter or act smart by taking a trade during premium erosion or during consolidation hours. Always remember that we can buy that same option contract for much lower price later.
5. Last but not least .... It is definitely NOT necessary to catch each and every single move of market.
OK guys .... Hope you make good money ...... Choose wisely .... Good luck to all ... Thanks
Disclaimer: This forum is meant for educational purposes ONLY.
Guys ... let's just keep it very simple. Banknifty is proving to be a puzzle for many these days. Traders are finding it really hard to deal with banknifty weekly options. This is mainly because it's moving in a broader range and not crossing it at all. Hence, let's not make things more complex.
Let's just try to formulate our plan on the basis of whatever we know till now:-
-- It is now confirmed that spot level of 27500 is one end of this broader range within which banknifty is roaming. It's acting like an end to the long highway. Therefore, 27500 (+ / - 50 points) is a crucial zone and a big resistance for the time being. Crossing it decisively will open new horizon.
-- Now, considering the previous make or break level of 27000 as the new crucial support (since it was the resistance which got breached decisively few sessions ago), we can conclude that the current range of 27000 to 27500 is now what we need to focus on and deal with.
-- Now the big problem for us (day traders) is the continuous melting of weekly options within this range of 27000 to 27500. This is proving to be a big challenge for us. But there are some ways by which we can deal with heavy premium erosion:-
1. From what I have noticed these days is that if we enter around 2 PM or 2:30 PM, then there is a better chance of making bigger profits. By 2 PM or 2:30 PM, option premiums become much cheaper for that particular day and the market is ready to show a decisive (and quick) move. However, there is every possibility of hitting the stop loss too. Hence, always enter after double confirming the intention of market.
2. Need to focus on levels these days. Resistance may become support if breached. Similarly, support may become resistance if breached.
3. Never ever trust O/I data. It can change within minutes. Always try to gauge the intention of market. In other words, try to listen what market is trying to say.
4. Never enter or act smart by taking a trade during premium erosion or during consolidation hours. Always remember that we can buy that same option contract for much lower price later.
5. Last but not least .... It is definitely NOT necessary to catch each and every single move of market.
OK guys .... Hope you make good money ...... Choose wisely .... Good luck to all ... Thanks
Disclaimer: This forum is meant for educational purposes ONLY.