Technical traders are bullish on the prospects of the NSE Nifty Bank Index ahead the weekly expiry today.
“I am not sure about the exact levels but it (Nifty Bank) will not expire below 25,600, options strategist PR Sundar told BloombergQuint on the sidelines of the annual Traders Carnival event in Mumbai. The Nifty Bank rose as much as 0.93 percent to 25,923, before paring gains.
Sundar is also vary of placing stop losses for his trades. “I tend to hedge trades by selling call options in case the market falls,” he said, adding that "in case of panic situations, I put a stop loss and come out."
Jegathesan Durairaj recommends a hedging strategy in order to protect profits in a volatile market. If I have a premium of Rs 5 in a call option, I make sure that I collect the same Rs 5 in a put option, Durairaj told BloombergQuint. The Bank Nifty should settle at around 25,700, in the May series, he added.
Traders Bullish On Prospects For Nifty
Having fallen for the past three to four days, traders recommend buying into Nifty futures but with strict stop losses. After yesterday's sell-off, today’s price action is suggesting there will be some rebound, Sanket Gujjar told BloombergQuint on the sidelines of the annual Traders Carnival event in Mumbai. “Being an intra-day trader, I am looking for a rise of at-least 30-40 points,” Gujjar added.
CA Rudramurthy advises to be long on the market at current levels with trades in Nifty futures as well as Bank Nifty. “I expect Nifty to bounce for the very short term having fallen continuously for the last four to five days,” Rudramurthy told BloombergQuint.”Bank Nifty can outperform Nifty today and I am bullish from an intra-day perspective.”
The Final Outcome
PR Sundar sold put options of 24,400, 24,500 and 24,600 Bank Nifty and later on when the markets rose, he sold further Put Options of Bank Nifty. On the other hand, Sanket Gujjar had a long on Nifty at 10,455 with a target of 10,474. To find out how their trades panned, whether they made or lost money in their trading calls, check this video.