14 Sep ’23 Post Mortem on BankNifty - just 0.8% to take out ATH
BankNifty Analysis
Banknifty had a decent range bound day today, but the options premium had some unusual jumps. I wasn't prepared to take advantage of those - especially during the open period as I was scanning for Nifty strikes to sell. After a few minutes I still saw the exorbitantly high OTM premiums both for PE and CE - but still couldn't capitalise as my margins were totally blocked.
This scenario has occurred due to the shifting of banknifty expiry to wednesdays. The lack of liquidity is shooting up options prices and I assume most credit spread writers may be dearly paying for this.
From a price action perspective, the sudden drop from 09.40 to 10.20 is still a mystery. Was it because we had a gap up opening and then the big-boys wanted a flattish closing so they had to sell a few heavyweights?
We are just 389pts ~ 0.84% below the ATH. With the momentum gained - it's quite possible that we take this out over the next 2 sessions. I won't even be surprised if we hit it tomorrow. I wish to go with a bullish bias for tomorrow with stop loss being 45725.
Banknifty had a decent range bound day today, but the options premium had some unusual jumps. I wasn't prepared to take advantage of those - especially during the open period as I was scanning for Nifty strikes to sell. After a few minutes I still saw the exorbitantly high OTM premiums both for PE and CE - but still couldn't capitalise as my margins were totally blocked.
This scenario has occurred due to the shifting of banknifty expiry to wednesdays. The lack of liquidity is shooting up options prices and I assume most credit spread writers may be dearly paying for this.
From a price action perspective, the sudden drop from 09.40 to 10.20 is still a mystery. Was it because we had a gap up opening and then the big-boys wanted a flattish closing so they had to sell a few heavyweights?
We are just 389pts ~ 0.84% below the ATH. With the momentum gained - it's quite possible that we take this out over the next 2 sessions. I won't even be surprised if we hit it tomorrow. I wish to go with a bullish bias for tomorrow with stop loss being 45725.
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