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Safest Banknifty Strategy - Expiry 21st January 2021 - Closed with 3% ROI

 Last edited on Saturday 21th January 2021


  • Banknifty cloased at 32246.80
  • Banknifty current future closed at 32314.05
  • SGX Nifty current futures closed at 14398
  • Put Call Ratio (PCR) is 0.70 and it is Bearish.
  • Max pain is at 32400, if it drops on monday that is a clear indication of Bearishness.
  • INDIAVIX is at 24.01
  • Union Budget is on 1st February 2021 because of that market is volatile.

Based on the above data we can say Banknifty is bearish and market is volatile. But on Friday 15th January 2021 Banknify was strong compared to Nifty. May gap down on Monday 18th January 2021. 30500 acts as good support and 33200 may be a good resistance. Our strategies are based on this support and resistance.

Current expiry is on 21st January 2021

Our view is bearish

Option Prices may change while you place the trades. Place trades after 9:45 AM. Adjustments will be provided if needed. Capital may required more if adjustments are made. Recomend to deploy only 50% of the capital.

  • All the strategies are deployed on 18th January 2021
  • Buy 28500 PE x 1 Lot 28st Jan Expiry
  • Sell 28500 PE x 1 Lot 21st Jan Expiry
  • Sell 33000 CE x 2 Lots 21st Jan Expiry
  • Sell 33400 CE x 1 Lot 21st Jan Expiry
  • Buy 33700 CE x 3 Lots 21st Jan Expiry
Return On Investment (ROI) will be 2.8% to 15% based on expiry. Capital required is 1.01 Lakhs but hightly recomend to keep at least 1.5 Lakhs. 


Pros - Probability of profit is high even market is slightly up. No risk at the downside.
Cons - Won't handle IV increase scenario completely. Only handles IV increase if market goes too downside. Vega is negative so won't good for highly volatile market.
  • 18th January 2021
  • 19th January 2021
  • 20th January 2021
  • 21st January 2021

Total P&L is Rs 3102 which is 3% ROI.

If you like my blog, let me know in the comments and I will post more this kind of blogs

Thanks and Regards,
Techie VISH 😉.

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Comments

  1. UnknownJanuary 17, 2021 at 8:21:00 AM GMT+5:30

    Very good Crystal Clear update but Why 28500 PE as support ? This is almost 3700 points lower than CMP ? Will bank nifty correct this much in 3 trading sessions ?

    ReplyDelete
    Replies
    1. Techie VISHJanuary 17, 2021 at 11:20:00 AM GMT+5:30

      Support is at 30500 but to maximize the profit at the higher end I have used 28500 PE also this will completely reduce any risk from downside. Because of this even market go up till 33300 you will get 2.8% ROI.

      Delete
    2. Techie VISHJanuary 17, 2021 at 11:20:00 AM GMT+5:30

      Thats why its a safest strategy.

      Delete
  2. SakthivelJanuary 17, 2021 at 8:47:00 AM GMT+5:30

    Nice... Keep publishing Bro...

    ReplyDelete
  3. UnknownJanuary 17, 2021 at 9:54:00 PM GMT+5:30

    Nice job

    ReplyDelete

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