August Series have started with a negative bias, but managed to close flat to positive at the end of the day giving some relief to bulls.
But the under current is still negative when we observe 10000 PE closed above previous day price despite index being positive.
Bank Nifty is trading with a historic high premium of more than 100 points. All the call options however lost premium substantially.
Nifty Future is bearish below 9995 and bullish above 10120.
Bank Nifty future is bullish above 24898 and bearish below 24820. Resistance seen at 25037.
In view of RBI Policy with big expectation of rate cut, it is advised to trade with caution. Go for call options only if 25037 is broken firmly. Or else go for Put option if BNF breaches 24740.
For the first time, on 2nd of August we will experience a intra day swing trade of 400 points where both the OTM Options will be rewarded.
Happy Trading!!
Wonderful.31st. already posted.Sir by observation of ICICI Bank yesterday I found bulls are weakening but they are deliberately pushing it hard to retain their money power.As because in Nifty Fut.the premium was so high it seems the are fearing a bear hug anytime.Being an expert as a GURU I want your views please.
ReplyDeleteSure. I will give my views on ICICI BANK today.
ReplyDeleteSure. I will give my views on ICICI BANK today.
ReplyDeleteVery nice... Thank you...
ReplyDeleteinformative article, i used to follow you on sgx forum earlier, pls keep posting your views....
ReplyDeleteAre you CP whom I refer earlier in my morning salutations.?
DeleteSir, I just came across your site and see very informative views on the market. Thanks for sharing them continuously without any expectations in return. I have a question for you. Currently the premium between bank nifty futures and spot is very high close to 125 points.The put option prices (next week) have not increased considerably because of this. Historically, what happen generally when there is a big premium like this? Spot will try to move upwards to bridge the gap or futures will move downwards? In the current scenario, having run too fast to this high, what is the most probable thing to happen? Spot moving up or futures moving down?
ReplyDeleteThanks in advance
One interesting point you must note is that on Friday all call options have lost premiums heavily despite heavy premium. You can now guess what will happen.
DeleteThanks for your comments. Expecting wild swings in bank nifty next week. I also expect futures to decrease and come closer towards spot. Interestingly rbi decision is there next week. Even though that would be probably a non event, waiting to see how the markets will react for it. Am into 24600pe for next week expiry. Keeping fingers crossed for now. Anyways markets are always superior. Waiting for next week show.
DeleteThanks once again
Sudhakar
In all probability future will drop down and this indicates intra day swings +/-300-400 points. Because bnf is bullish above 25000 and bearish below 24500. This kind of big gap will create more volatile sessions.
ReplyDelete