UNITED STATES OF BANKNIFTY

[Top_Massage]

Alright folks ... moving forward ... we just have to focus on two broader levels i.e. 31000 and 31500 (+ / - 50 points)

-- If bulls could somehow protect 31000 in upcoming sessions, then surely they can try for 31500 or beyond .... but then again, 31500 may just act as a resistance since it was solid support till Friday which got breached decisively. Hence, bulls will have to surpass the higher obstruction of 31500 decisively in order to expect 31750 or even new all time high ....

-- If bears could somehow breach and stay below 31000 (+ / - 50 points) for long enough, then banknifty may just slip towards 30950, 30850, 30750 and so on .... Broadly speaking, 30500 (+ / - 50 points) may just act as a good support ....

Choose very very wisely ... Wednesday is a trading holiday. And we have RBI policy on Thursday .... So, option premiums will see heavy manipulation. Got to be aware of that. Confirm the trend before entering a trade ... All the best ... Hope you all make good money ...

Disclaimer: This forum is meant for educational purposes only.

 

[Top_Massage]

Well ... it was pretty evident right since the beginning at 9:15 AM that today's whole session would be dedicated to option writers only ...

And rightly so, as the option premiums were trading at higher levels on Friday. As a result, option premiums kept on melting (thanks to heavy option writing activity throughout the day). This is indeed good for option buyers. Option buyers prefer cheaper option premiums more than anyone else.

My plan was to wait throughout the first half and most probably enter only between 2:30 PM to 2:45 PM (after majority of intraday premium erosion got completed). But unfortunately, the plan failed miserably since the premium erosion continued to my surprise even during last hour too. I entered in Banknifty CALLS only after thoroughly confirming that Banknifty will surely stay above 31500 throughout the remaining session. But then again, premium erosion was just too heavy. Value of CALLS was not moving up even when the index was trading higher. Hence, I had to bear LOSS in the end.

But it's fine, hopefully, we will get a good opportunity soon as the weekly options have become cheaper today.

Disclaimer: This forum is meant for educational purposes only.

 

[Top_Massage]

Alright guys ... moving forward ... 31500 is still not out of woods completely ... Bulls need to stay above it for long enough at any cost in order to expect 31750 or even fresh all time high ...

Hence, for Tuesday the 4th June, we just have to focus on only one level and that is 31500 (+ / - 50 points) ... staying above it for long enough, we go up ... staying below it for long enough, we go down ...

Disclaimer: This forum is meant for educational purposes only.

 

[traderhardrock]

hmmmn
loosing on BN calls on a day like that of Monday
is certainly not good trading.

 

[Top_Massage]

one small hint ... Banknifty needs to surpass and stay above 'All Time High' (31783), otherwise, it may just become a CLASSIC case of double top or even triple top in near future which may be a sign of trouble for bulls ...


Disclaimer: This forum is meant for educational purposes only.

 

[Top_Massage]

It's been a day of premium erosion so far .... Quite obvious, since tomorrow is a holiday ... I am still waiting for my first opportunity ... let's see .. will wait till second half

Disclaimer: This forum is meant for educational purposes only.

 

[Top_Massage]

Wow ... the erosion of premiums just got heavier and better ... I am loving it sitting and watching quietly on screen ... cheaper the weekly options, better the opportunity for options buyers

Disclaimer: This forum is meant for educational purposes only.

 

[Top_Massage]

Well .. whatever is happening is pretty obvious ... it seems I will have to switch off my screen without doing anything today ... there was simply no chance of buying options .... premium erosion is so HEAVY and RUTHLESS today ...

This is all because tomorrow is off ... so premiums are falling at double the intensity ... This week is going completely empty till now ... Yesterday was a loss making day ... today also my bucket is empty ... it's extremely frustrating but it's part of my trading career ... it's not in our control .. we can only sit quietly and track market ... it seems this weekly expiry was never meant for option buyers ... Anyway, enjoy holiday tomorrow ... time to go go now ... bye guys ....

Disclaimer: This forum is meant for educational purposes only.

 

[manny.here]

Well .. whatever is happening is pretty obvious ... it seems I will have to switch off my screen without doing anything today ... there was simply no chance of buying options .... premium erosion is so HEAVY and RUTHLESS today ...

This is all because tomorrow is off ... so premiums are falling at double the intensity ... This week is going completely empty till now ... Yesterday was a loss making day ... today also my bucket is empty ... it's extremely frustrating but it's part of my trading career ... it's not in our control .. we can only sit quietly and track market ... it seems this weekly expiry was never meant for option buyers ... Anyway, enjoy holiday tomorrow ... time to go go now ... bye guys ....

Disclaimer: This forum is meant for educational purposes only.

TM I traded both in Nifty and Banknifty and was able to have profitable trades. Even though there is premium decay still there is chance to make good trades. When index moves on one side the opposite side premium erosion is faster but same side you will be able to get profit. Try with less quantity and strict stop loss and do not wait for long to cover.

Just my thought , I know you are trading in Banknifty from long so you understand these things thoroughly .

 

[Top_Massage]

Alright folks ... moving forward ... to begin with, now there won't be any trading holidays at least for almost couple of months ...

Coming back to Banknifty, we just have to focus on two levels only:

-- Like we have been discussing since past week or so, 31500 (+ / - 50 points) is still the main decider ... it is the real make or break level now ... Staying above it for long enough, we go up ... Staying below it for long enough, we go down ...

-- Another level is the level near 'All Time High' of 31783 approx ... Bulls will have to surpass it soon enough in order to achieve new heights ... Otherwise, we are at BIG DANGER of developing a perfect case of TRIPLE TOP and the fall might be severe too ...

Tomorrow is RBI Policy ... It will be interesting to see if bulls can save 31500 and surpass 31783 decisively or if the Banknifty crashes big .... Choose very wisely ... Confirm the trend before entering a trade ... Good luck

Disclaimer: This forum is meant for educational purposes only.