1. If there was any doubt about how important Options charts are.. today was the day that removed it.
Below is #BANKNIFTYFUTURE chart on 5-min time frame.
The first line of support for Banknifty futures was around 22130. It bounced off that zone multiple times yesterday.
Below is #BANKNIFTYFUTURE chart on 5-min time frame.
The first line of support for Banknifty futures was around 22130. It bounced off that zone multiple times yesterday.
2. Then today even after a gap up, the rally got sold into and took support around the same levels and bounced back.
However the fat 12:10 candle was the last attempt by bulls to breakout of the zone. But there was no followup and it was back again at 22130 levels.
However the fat 12:10 candle was the last attempt by bulls to breakout of the zone. But there was no followup and it was back again at 22130 levels.
3. I was tracking the 20th Aug Expiry 22200 CE-PE contracts since morning and even with BNF gapping up, along with IV sliding lower by upto 2%, the ATM Put was not going below VWAP in any meaningful manner. This was the show of strength. #banknifty #bankniftyoption
4. The 12:10 candle did push it lower, but the confirmation never happened. As Index tested 22130, 22200PE started testing the VWAP curve around 290-295. When the final break came at 13:30, the 22200PE started rising with volume. That was the cue to go long on the Put side.
5. On the CE side, even after the gap up, it didn’t sustain above the VWAP line. Comparing it along side, 22200PE curve, it was reasonably clear on which side strength was forming.
And these were my trades. Qty has been erased.
There is no technical reason for the partial exits except for the fact that how I generally play. Booking the last tranche at such a great price was more luck than skill.
There is no technical reason for the partial exits except for the fact that how I generally play. Booking the last tranche at such a great price was more luck than skill.
13:51 trade has been put higher by mistake while editing the pic. Pardon.
