Harvesting 500 Bank Nifty Points a Month.

[columbus]

If market falls then PE should gain and if market moves up then CE should gain.

It is strange to find sometimes ( if FALL or GAIN is less) to find both CE and PE
in ONE direction (either UP or DOWN).When compared to Nifty, BankNifty obeys
the above rule more obediently.

Similarly if CE gained by some quantity for a NIFTY RISE, similar PE gain is not seen
if market falls by same quantity.This is more pronouced well before EXPIRY.
In case of BankNifty this happens just before EXPIRY.

These 2 factors score better in case of BANKNIFTY over NIFTY.
But the only Negative point is BIG, Bid-Ask spread.

 

[The Monk.]

If market falls then PE should gain and if market moves up then CE should gain.

It is strange to find sometimes ( if FALL or GAIN is less) to find both CE and PE
in ONE direction (either UP or DOWN).When compared to Nifty, BankNifty obeys
the above rule more obediently.

Similarly if CE gained by some quantity for a NIFTY RISE, similar PE gain is not seen
if market falls by same quantity.This is more pronouced well before EXPIRY.
In case of BankNifty this happens just before EXPIRY.

These 2 factors score better in case of BANKNIFTY over NIFTY.
But the only Negative point is BIG, Bid-Ask spread.

If market falls then PE should gain and if market moves up then CE should gain.

This rule doesnt take into a/c volatility, where as options are as much to do with volatility as it is with delta.You can somehow forecast delta by some TA, but how in earth u will forecast volatility.So without getting into magajmari, sticking to pure delta based trades.

 

[The Monk.]

Exited longs @ 11492

Points from ths trade:118

 

[The Monk.]

BNF is in a broad range of 11500-11300.
Best strategy would be to buy at support & sell at resistance.

 

[The Monk.]

Going long @ 11393

 

[The Monk.]

Going long @ 11393

exited @ 11369 , not looking good

Loss 24 points.

 

[The Monk.]

Long BNF @ 11511

 

[The Monk.]

Long BNF @ 11511

Exit @ 11620.

Gain of 109 points.

 

[mohammed arqum]

how to buy shares

 

[The Monk.]

Comparing BNF with NF, clearly tell you that BNF is displaying more strength than NF.

BNF managed to breakout from the range, where as NF has still not able to breakout.

BNF is almost closer to its recent highs, which tells you the momemtum is in banking stocks.

What i beleive is BNF will hit a new high, and can even touch the 12000 levels,where as i doubt NF can do the same.

So now the bulls are clearly incharge of indian markets, and whats stopping them from going on a rampage is the indiciveness and chopiness in world markets.

So for me the strategy is clear, avoid shorting and buy on every dips.