Hello dear friend, in this blog post, we will do the post market analysis and will try to find support and resistance for tomorrow in Nifty and BankNifty. So read the post till the end to know what the trading plan could be today based on the trend and levels.
After a range-bound activity, the Market opened flat today, but we can see some long buildup in the first half in Nifty while we saw some short buildup in BankNifty today.
But in the second half we saw a highly fluctuation in both Nifty and BankNifty due to BankNifty expiry today. Fluctuation was so big that triggered the stoploss in both the side for option sellers.
The overall sentiment was bearish where 184 stocks are advanced, 314 are declining and 1 was unchanged in the Nifty500 index.
In sector analysis, Small Caps and PSU Banks were the top looser while Nifty IT and Nifty Auto were the top gainer today.
Post Market Analysis Based on the chart
- After taking support near 19000, We saw fresh buying in the last few weeks in Nifty. Now Nifty is trading in near the resistance zone i.e. 19900 - 20000. This range is important for further levels. A sustainable breakout from this range will trigger a long signal and Nifty may try to hit the all-time again.
- On the other hand in BankNifty, we can see some pressure. In the last few trading session we saw some short buildup after BankNifty face resistance near 44400. Now BankNifty is trading near the important support level i.e. 43600. If banknifty manage to give a sustainable breakdown, we may see some more downside till 42800 in the coming sessions.
Now after looking at chart, we can say that short term trend looks bullish in Nifty and bearish in BankNifty due to short buildup on higher side.
Based on the short-term trends, we can create a mild bullish strategy in Nifty and a bearish strategy in BankNifty.
Keep one thing in mind while creating your option strategies that both the indices trading near support or resistance levels. So keep yourself prepared for some consolidation or reversal. Choose your strategy wisely.
Post Market Analysis based on OI data
- For Nifty: 19700 is acting as immediate support with a PCR at 3.79 and resistance has shifted to 19900 with a PCR at 0.12. Max pain is at 19800.
- For BankNifty: 43100 is acting as immediate support with PCR at 6.10 and 43700 as immediate resistance with PCR at 0.39. Max pain is at 43500.
- Expiry Range:
- For Nifty = 19700 – 19900 (for tomorrow's expiry).
- For BankNifty = 43000 – 44000 ( based on current oi data. Keep following change in Oi for further levels)
The intraday trend is “Bullish” in Nifty and “Neutral" in BankNifty. (based on our trend-following sheet and setup)
Important levels for November 23, 2023
Tomorrow is Nifty weekly strategy. So you have to trade cautiously if you are new to options market.
Because of the trend, we can create bullish strategies in Nifty but because of expiry, I suggest we should trade Neutral strategy only in Nifty:
- In Nifty, We can create iron butterfly with 19800 CE & PE Sell while 19900 CE and 19700 PE = buy. keep following the data for further levels.
- In Banknifty, We can short calls if this trend continues and data shows bearish trend.
One thing you should keep in mind is that the above trades are based on the current data and need some adjustments if data changes. So proper knowledge and understanding are required before taking entry into any position.
If you don't know who to create and manage these option strategies, Option Strategies: A Mentorship Program would be the best online course for option trading.
I have also shared my Intraday strategies and trend-following trading setup in a small course. You can click on the below link to get access to the course.
DISCLAIMER: We are not SEBI research analysts. Views and trading strategies are posted in this weekly market newsletter only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline for interpreting specified analysis methods. This information should only be used by investors and traders aware of the risk inherent in securities trading.