What are the chances of being charged penelty if i trade option this way? Or what are the Risks here?

In Case i am trading Nifty Option / Bank Nifty option (Call / Put)
Scenario :

Day 1 : (Assuming Monday)
Assuming Spot Nifty on Monday at 3 P.M = 10740.
I sell / short 1 lot 10600PE of Nifty Option as product type NRML. (Trying to take advantage of the Premium Gap on next trading day assuming it goes in my favor or you can also assume i have a strong hedge position to counter the loss, if this trade goes against me!)

Day : 2(Thursday) : The trade goes in my favor and within 10 A.M i am able to collect premium suppose Rs.8.Now if i buy back 1 Lot of 10600PE and enter in another option trade (Short /Sell) may or may not be the same strike price depending on the market condition and again exit that trade with in 3 P.M and again short same or different strike price depending on the market condition and hold it overnight, and repeat vice versa on Day - 3.

1) What are the chance of facing penalty as option settlement happen T+1 day?
2) Suppose it takes Rs. 50,000 to sell 1 lot of Call / Put at any strike price(OTM), Now assume i have only Rs.51000 in my trading account. So when i buy back the call / put on day 2 the principle amount (Rs.50,000) should be credited in my trading account instantly.(Again assuming i am at 8 point profit)in this case can i still take a overnight position using the same principle amount I,e, Rs. 50,000?
3) what are the other risks i should know if i trade using this method!?
@nithin can you explain please!

No issues with that. You can do this. Only risk/reward you need to consider is the general trading RR (following SL and exit). Rest all is good.

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