Nifty 50 – Bank Nifty Trading – 8th April – 12th April 2019 – Option Chain Analysis

Published on April 5, 2019

Nifty 50 – Bank Nifty Trading – 8th April – 12th April 2019 – Option Chain Analysis

I have begun this video on Nifty and Bank Nifty by explaining how one should use PE ratio in 2019 by following some simple rules. Quite often, Investors and Traders get too fixated on PE number and this is not the right approach. Whether it is Stocks in Nifty or in Bank Nifty or in any other NSE index, Investors and Traders should focus on High PE stocks for Momentum Trading and Investing.

I have the moved to Nifty and Bank Nifty price structure chart where I have highlighted how Nifty has entered a multiyear up move cycle as it is coming out of a flag pole variation pattern on Nifty – USD chart. For the long term at least, this has positive implications as far as Nifty and Bank Nifty are concerned. On Bank Nifty chart I have shown that price has moved up 4400 points in a span of 6 weeks and therefore now price can consolidate in Bank Nifty for the same duration without altering structure of Trend. Also, Price structure wise, retracement of Price can happen up to 61.8% level and Trend structure on Bank Nifty would still remain the same.

Towards the end, I have discussed Nifty chart and Bank Nifty chart key levels for next week. I have also done comparative analysis of Nifty PE ratio and S&P PE ratio and have concluded that while historic PE is an important data point, one must combine it with Price to Sell into market with High PE readings. PE re rating does happen as we saw in S&P 500 and one must be careful while considering possibility as certainty. For now, both Nifty and Bank Nifty are in Uptrend and Price must be given importance.

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