UNITED STATES OF BANKNIFTY

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Quick trade done .... once below tiny range of 27000 to 27150, it was always going to show some weakness at least once ... but my main concern is highly inflated option premiums .... whenever they will meltdown, it will cause a lot of pain to option traders ... we need to be careful ...

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Just look at those deep OTM options in Banknifty ... I have not seen such inflated option premiums since the budget event ..... even if we get to see big movement, these deep OTM options will find it very difficult to produce further gains ... I suspect option writers will soon come into play and takeaway all the froth (i.e. inflated premiums) ...

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Finally, some sense prevail ..... India VIX cooling off now .... moreover, INR pulls back itself from 72 level ..... I think RBI is selling some dollars from its record forex reserve to control the fall in currency ....

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AGAIN!! we are now standing at a crucial level of 27000 .... let's see

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Finally, it seems option premiums are coming down gradually ... assuming that nothing erratic happens next week, then I think it may take Monday and Tuesday to bring the premiums to normal level

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When will this thing improve?? It's been quite a few days .... it's always negative

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Finally, Advance Decline Ratio turns positive

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ok guys .... enjoy weekend ... we shall meet again ... bye ...

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Alright, moving forward ... it seems tiny range of 27000 to 27150 is strictly a NO TRADING ZONE .... However, it will decide whether bulls will survive or if bears will excel once again ...

On surviving this range and staying above it for long enough, we go up ...

On failing to protect this tiny range, we may collapse again

Watch very very closely ...... good luck

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Quick trade done .... but then again, gradual premium erosion has somewhat affected the profit margins of call buyers today ....

Disclaimer: This forum is meant for educational purposes only.