Bank Nifty: At crucial level

٢٣ ديسمبر ٢٠٢٢

Bank Nifty

21 day EMA currently around 42957
63 day EMA currently around 41748

These are dynamic and keeps changing, so follow the chart for exact levels on any particular moment

Unlike Nifty, Bank Nifty is still trading above its 63 day EMA. However with weak global sentiments overall, it would be a test of time for Bank Nifty.

- important levels to watch out for 41850-41640
- if that is taken out minor support at 41352
- major support at 39620


Given the set up, one may consider a Bear Call spread strategy
Sell Bank Nifty 25 Jan expiry
43000 Call option currently around 525-535 and
Buy 43500 Call option currently around 345-350

The strategy provides a profit potential of approximately 13% on ROI and at the same time
covers risk for a rise up to 43180 points ( covering risk for a rise up to 21 day EMA)


Take care & safe trading...!!!

Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be

Take care & safe trading...!!!