Bank Nifty Trading Strategy for Today: The Indian stock market indices, Sensex and Nifty 50, are likely to face continued selling pressure on Monday, influenced by weak global market trends.
On Friday, the Nifty index plunged 896.20 points, or 1.74%, closing at 50,576.85 and forming a long bearish candle on the weekly chart.
Rahul Ghose, CEO of Hedged.in, observed that Bank Nifty has breached its immediate support at the 51,000 level, signaling bearish sentiment in the index. He noted that the ADX indicates increasing downside momentum following Friday’s decline in Bank Nifty.
Given this bearish outlook, Ghose recommends a low-risk Bank Nifty Options strategy from Hedged.in, which is designed to profit if Bank Nifty declines by the end of September’s expiry.
“The best part of this trading strategy is that, even if the Bank Nifty does move upside, the sold put can be brought upside to protect the debit in the bought put, making the trade safe. The risk in the trade is ₹1,800 only, with the technical view favoring the downside, the trade has a fair chance to end in profits,” Ghose said.
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Here’s Bank Nifty Options Trading Strategy for today by Rahul Ghose:
Bank Nifty Bear Put Spread
Trade Structure:
- Buy 1 lot of the 25th Sept expiry 50000 PE at CMP
- Sell 1 lot of the 25th Sept expiry 49500 PE at CMP
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