Nifty 50 – Bank Nifty Trading Strategy – 15th April – 18th April 2019 – Option Chain Analysis

Published on April 12, 2019

Nifty 50 – Bank Nifty Trading Strategy – 15th April – 18th April 2019 – Option Chain Analysis

I have begun this video on Nifty and Bank Nifty by explaining the basics of Pull back trading. In the current market context, knowing how to re-enter strong trend is probably going to matter a lot since some key stocks have run up in March. I have shown how by using simply Price chart along with Moving average and Stochastic indicator, one can enter into stocks during pull back and participate in the Trend.

Concepts explained here can be directly applied to Nifty stocks and Bank Nifty stocks. I have also given out couple of examples within Nifty and Bank Nifty Index where stocks are near the buy point currently or have moved up from it. I have also mentioned that while selecting stocks from Nifty and Bank Nifty, one must prefer stocks to participate in the Trend and avoid using F&O segment for the same.

I have then moved to Open Interest Analysis segment for Nifty and Bank Nifty where this week I have taken up consolidated for Nifty and shown why price is unlikely to breakout soon. Both Nifty and Bank Nifty are within wall of support from Puts and wall of resistance from calls and unless one side gives way, Nifty and Bank Nifty are expected to stay In the current range. I have then moved to Nifty and Bank Nifty Trading Strategy for next few weeks.

I have pulled out Nifty 50 chart where it is evident that a double top is now in place. However, I have explained how one has to see the current developments in Nifty while tracking what Bank Nifty does over the next few weeks. In current market context, Bank Nifty is more important due to price strength and its relative strength rating.

Towards the end, I have discussed Nifty chart and Bank Nifty chart key levels for next week. I have also taken up FII and Retail Participant wise Open interest data to show that while FII’s have largely kept their positions open, it is the retail segment that has reduced exposure in Index futures. Trend for both Nifty and Bank Nifty remains up and traders and investors should focus on participating in the Trend.

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