Weekly Banknifty Tracking upto Dec Expiry - Views/Trade ideas

The December series started off with a bang of selling and I was hoping this to happen but as usual ended up buying a call option and in losses now. I am still hopeful I could exit the position and enter at appropriate levels to do some profitable trades for this month without eroding my capital. Lets get into the analysis part.

The weekly chart shown below clearly illustrates that there will not be major pullback

Also, the monthly chart shows that support is at 25058 and breaching this could drag to 24555 levels.

From the above option chain analysis, we can expect that the trade could be in the range of 25300 to 25000.

From the daily chart, supports are available at 25093 and 24983. Resistances are 25263 and 25321.

And an interesting thing to watch is, 28DEC option chain shows that PCR greater than 1.0 and this shows that investors are expected Bank Nifty to recover back.

P.S: Out of 3 scrips in the top 4 of the Bank Nifty shows weakness except Kotak Bank in the weekly charts

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@Lets_Invest @q45 @btr @vicky_kothari @Srinivas Kindly share your thoughts on this to get this topic going and please feel free to stop or correct if you feel something wrong about the analysis. Thanks in advance.

when mkt goes up deep ITM calls will be covered and if mkt goes down deep ITM puts will be covered … also the amount of puts covered here is not that huge …

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Chances of slight gap down opening for BN / Nifty , chance to exit the shorts, now Bank nifty & Nifty are sell on rally markets .I think 24983 -914 level being a good support for BN

Bro, wht made u to think BankNifty 25200 below strike Put transaction as Put writing?

@VelmuruganSengottai Could you please help us understand what are you trying to ascertain. Means more specific on your analysis.

@q45 Bro if its going to be a gap down, wouldn’t it be prudent to wait and exit the shorts. Or you were trying to say there will be a gap up

Bro. Kindly look at the change in OI with respect to the total OI. That clearly shows that put writing has happened.

chances of Slight gap down is because, nifty closed very near to its low made during the day & also lots of shorts are created during the last hour trading, Since nifty is near to its strong support, 2 days of gap ,cool down the sentiments , Nifty is nearing oversold level, considering the daily nifty range, support is in between 10065- 10000, so its safe to cover shorts , Considering the sharp fall, Once shorts covered( not all shorts) market may consolidate, but intermediate charts for Nifty showing weakness so its better to be short on rally s .

when market goes down inside the money puts will be covered and mkt goes up inside the money calls will be covered especially when the move is strong …
open interest in weekly options just follows the current sentiment