Predicting BankNifty

Can anyone give pointers on at least some prediction of Bank Nifty for the day?

One day its choppy, other days it shoots up or crashes and the other day both bulls and bears run rampage in the same day.

Any pointers, indicators or technical analysis thing?

Thanks

Hey one thing i can surely tell you it’s impossible to predict at least bank nifty(no pointers technical , chart pattern , fii buying nothing helps) …but if you see the daily candle chart it’s forming a double top pattern , even dow is forming it …now according to charts it should come down but again US elections are near …so it can go anywhere …yes last few days it’s been extremely volatile …its really frustrating

Sir, you advise to trade in it in this month and the next month?

Please don’t call me sir…
See the vix is high so i am not trading until the US elections results are out

Bank nifty is perhaps the only index in the world where a single stock has more than fifty percent weightege on index. 12 constituents form the index.

Hi,

As a statistician, all I can say is - not just bank nifty but for any other stock, it’s impossible to know where it goes. All you have to do is, follow some simple statistical concepts to win the race. If you have ever played casino, that’s precisely what we do in trading.

  1. Have some strategy that has statistical edge - like sell deep OTM options. Even 4-5% edge would give you millions.
  2. Position sizing - Make sure that your position of each trade is very less, possibly not more than 1-3% risk
  3. No. of bets - Keep doing the same thing again and again for months or even years. As your no. of trades increase, your trading accuracy tends to move towards statistically proven accuracy.

Just follow above 3 rules and your children will drive luxury cars.

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