Skip to main content

BankniftyMovement

How to judge BankniftyMovement ?

Bank Nifty is one of the important indices which comprises of the most liquid and large Indian Banking stocks. Lagging and leading behavior of Bank Nifty can help us to gauge the strength or weakness of the ongoing trend in Nifty. In fact, the Bank Nifty Index is positively influencing almost all the sectoral indices of NSE in both bull and bear phase market movements. Hence before making any investments in the equity market, the investing and trading community must look into the behavioural pattern of banking sector stocks as they influence the behaviour of other sector stocks too and do investments or trade accordingly.
The judgement of index movement is depend on Fundamental and technical factor.



Fundamental Factors: 

1. Bond Yield Movement: When a country’s macro-economic situation (CPI, GDP, trade Balance, and fiscal deficit ) deteriorates, bond prices fall and bond yields rise. For stock market investor point of view, Rising bond yields erode banks treasury income and vise-versa.



2. Quarterly Result update of top 6 Banks (HDFC Bank, ICICI Bank,  KOTAK Bank, SBI,  Axis Bank and IndusInd Bank): Net interest income, or core income from operation, Net interest margin, Asset Quality Improves,  Capital adequacy ratio and CASA ratio



Technical factors: Derivative Indicator 

1. High Call and Put option OI (Open Interest ) of the index: Positional and short term

2. High Call and Put option OI of HDFC Bank, ICICI Bank, KOTAK Bank, SBI and Axis Bank.

3. Index Future OI and Price movement on weekly and monthly data: Long Buildup, Short Buildup, and Short Covering

4.Option Activity(Weekly and Monthly): Short Buildup or short covering strike with relation to their price and IV movement.

5. Cost-of-carry (COC) Movement: Premium or discount, high premium means range-bond expectation.

6. Index IV percentile: above 90 or below 30

7. PCR (Put-call Ratio) OI trend: Increasing trend indicate bullishness and vise-versa.

8. VWAP (Volume weighted average price) level: Weekly, monthly and quarterly 

9. Options Activity in HDFC Bank, ICICI Bank, KOTAK Bank, SBI and Axis Bank.

10. Index Ratio trend: Banknifty/nifty 

11. EMA (Exponential moving average) Levels : 10,20,50,100 and 200

12. Trend Reversal date calculation through "Gann degree"

13. Elliott wave for Positional trend only 

14. Mean +1, 2 and 3 level with help of Fibonacci Extension: Weekly and Monthly

15. Index HV (Historical volatility ) movement 



  

Remark,s : 

We give bullish or bearish strategy recommendation with hedge format on the index by screening above factors, that,s why our success ratio (87% in the last 1year) of the FNO strategy is high. It is very essential to have discipline and proper knowledge to succeed in trading. The rewards of trading are high but that depends on the decisions. Trading requires a lot of time and attention paid to the markets, trends, technical indicators and national and international news regarding capital markets.

Comments

Post a Comment

Popular posts from this blog

Why Does One Read Books?

(In this letter, Jawaharlal Nehru tells his daughter Indira which books to read and why He sent this letter from the district jail, Almora, on 22 February, 1935.) You have accepted my suggestion that I should send you books from time to time... Most of the books I get here are reu books, just published. Some of them are good, and yet I wonder how many will survive after a few years. There was an old zule that was dinned into me when I was about your age: don't read books less than fifty years old. The idea obviously was that a lapse of that period will sift the good from the bad and the indifferent, and if a book survived, it was likely to be worth reading. It was a good rule. It cannot of course apply is scientific, historical, political, economic and similar subjects, in which continuous research work is resulting in an addition of knowledge. In these subjects such rapid changes are being made nowadays that a book written a generation back it completely out of date, t...
Post a Comment
Read more

Ten empowering messages to tell yourself daily

Ten empowering messages to tell yourself daily  1.Trust your instincts  2.Do your blessings  3.Count your blessings  4.Less is more 5. Monitor your thoughts  6 Acknowledge others often  7 Ask for help when you need it  8. Rest in solutions  9 Attitude is everything  10 Step and smell the roses 10 seconds boldness  10 seconds of boldness twice a day has to do with the courage to ask for what. You want the courage to pick up the phone to make that call. The courage to say what's hard to say. The courage to ask for the sale or the raise. The courage to step out of your comfort zone.     Make your new Mantra " Strive for excellence rather than perfection." How do we retain information  10% of what we read  20% of what we hear  30% of what we see  50% of what we see and hear  70% of what we say as we talk  90% of what we say as we do a thing.
Post a Comment
Read more

Development is a Culture

Development is a Culture అభివృద్ధి అనేది... ఆలోచన విధానంలో ఉంటుంది. ప్రణాళికలో ఉంటుంది. ధనాన్ని ఉపయోగించే పద్ధతిలో ఉంటుంది. అవకాశం వచ్చినప్పుడు దాన్ని ఎలా ఉపయోగించాలో తెలిసే తీర్పులో ఉంటుంది. సమస్య వచ్చినప్పుడు దాన్ని ఎలా తట్టుకోవాలో తెలిపే దృక్పథంలో ఉంటుంది. అభివృద్ధి అనేది... భౌతిక వనరుల దాటి మనసు స్థాయికి సంబంధించిన విషయం. ఇది సంస్కృతిగా పరిగణించాలి. ఇది ఒక కుటుంబంలో పిల్లలకు చిన్నప్పటినుంచి నేర్పవలసిన జీవన శైలి. పరిశుద్ధత, పట్టుదల, ప్రణాళిక, పరస్పర సహకారం, బాధ్యతా పూరిత జీవన విధానం — ఇవన్నీ కలసి అభివృద్ధి సంస్కృతిని ఏర్పరుస్తాయి. దీరూబాయ్ అంబానీ వారసత్వం ఇద్దరికీ సమానంగా వచ్చిందేమో కానీ... అభివృద్ధిని చూసే దృక్పథం మాత్రం ఒక్కరిలో మాత్రమే బలంగా వృద్ధి చెందలేదు. అందుకే తేడా వచ్చింది. ఇప్పటి యువతలో చాలా మందికి అవకాశాలు ఉన్నాయి... కానీ అభివృద్ధి కల్చర్ ను అలవరచుకోవాలనే ఆలోచన తక్కువగా కనిపిస్తోంది. ఈ భావనను అందరికీ బోధించాల్సిన అవసరం ఎంతైనా ఉంది. __ పిళ్లా కుమారస్వామి,9059054756
Post a Comment
Read more