UNITED STATES OF BANKNIFTY

Top_Massage

Well-Known Member
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.
 

Top_Massage

Well-Known Member
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.
Follow the above instructions for today and upcoming sessions. Hopefully, it will be beneficial for all of us. Best of luck folks ....

Disclaimer: This forum is meant for educational purposes ONLY.
 

Top_Massage

Well-Known Member
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.
Well .... Again .... It was a day of only and only PREMIUM EROSION .... and nothing else ...

I tried once during second half but it just did not work at all .... premium erosion was really heavy today.

It was a bad day today (and a bad start to the week) .... But we will try again tomorrow. Let's hope for better movement tomorrow.

Thanks ... see you tomorrow


Disclaimer: This forum is meant for educational purposes ONLY.
 

Top_Massage

Well-Known Member
Hi T-M & other BN traders, today Bn slowly gaining premium in future , it's more-than 100 points from yesterday it's 60-80 points premium.

so what it will indicate..?

but market grinding..(upto 2'0 clock?)
Happy Trading..
Sorry .... I just saw your message right now. Was away from home. Anyway, you are absolutely right. Like last few sessions, markets witnessed heavy premium erosion during first half. The move came only around 2:45 PM approx. And it was SUPER QUICK move which is normally difficult to catch.

Coming to your extra premium query. There can be several reasons for the same. Some of the reasons are:-

1. Whenever the Futures premium rise suddenly, there is a clear motive or plan to take down the premiums of PUTS simultaneously for next few minutes or even for next few hours during that particular day. That is exactly what happened today. As soon as Futures premium spiked, the premiums of all PUTS were melting as if there is no tomorrow. The main plan of institutional traders was to BUY PUTS AT CHEAPER PRICE and make those cheaper PUTS surge later. I suppose 27000 PE (weekly expiry) went on to make a high of 109 from low of 31 approx.

2. Second reason (which was definitely not the case today) can be sudden rise in anticipation or speculation of big surge in markets due to some upcoming positive news or economic data.

3. These are basically nothing but daily games played by DIIs and FIIs to trap us (small retailers). That is why it's important to wait till the end and confirm the intention of market.

4. It has been observed on several occasions that a sudden spike in Futures premium just before month end expiry indicates that DIIs and FIIs are deliberately trying to pump up the CALLS premium only to take them down later on.

Thanks .......

Disclaimer: This forum is meant for educational purposes ONLY.
 

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