How to trade the Bank Nifty on today's expiration day

 How to trade the Bank Nifty on today's expiration day

7.Analysts predict a bumpy general trend for the Bank Nifty, with a move between the 43,250 and 43,500 zones requiring consistency above 42,750. Support for the downside is seen around levels 42,750 and 42,500.

On November 1, at 1:00 PM, the Bank Nifty index is down 0.38 percent, trading at around 42680 levels.

The Bank Nifty index had a favorable opening but quickly began to decline. After closing on October 31, it created a bearish candle on the daily scale, but for the next three sessions, it has been steadily building higher highs.

"In order to continue forward into zones 43,250 and eventually 43,500, it must sustain levels above 42,750. On the other hand, 42,750 and 42,500 are recognized as support levels, according to Motilal Oswal Financial Services (MOFSL).

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"A move towards the 43,250 and 43,500 zones requires stability above 42,750, and the overall trend is expected to be choppy." The MOFSL said that 42,750 and 42,500 levels are significant points of support for the downside.

Weekly Alteration

The weekly closing value of the Bank Nifty is 42,845, indicating a 1.34 percent rise. According to MOFSL, the Bank Nifty Volume Weighted Average Price (VWAP) for the week is trading 200 points below at 43,050 zones, indicating restricted upside.

"Bank Nifty exhibits a 5.06 percent rise in Open Interest with a 1.12 percent rising costs, signifying a long build-up," Axis Securities said.

Axis Securities rates it as a moderately pessimistic perspective and recommends a Put Spread approach. This spread technique may be attractive to traders looking to generate moderate returns with little risk and reward. According to Axis Securities, the recommended spread entails purchasing one lot of the 43,000 strike Put option and concurrently selling one lot of the 42,500 strike Put option.

The Financial Services of Motilal Oswal

Option Strategy: To catch the swing with capped downside, option traders are suggested to start a Bull Call Ladder Spread (Buy 42,800 CE, Sell 43,100 CE, and 43,300 CE).

It is advised for option writers to sell Bank Nifty 42,300. Put and Sell 43,200 Call with a tight stop-loss of thrice.