This Bank Nifty Call Option (37000 Call- 09 Dec 2021 expiry) was our top buy today, because it was having a very reliable setup that comes once in 2-3 months, which must not be missed. Our average buying price is 125, and our target is 250 (for 100% gain), and the target is highly likely to come before 09 Dec 2021. In fact, the target can come within this week by Friday, 03 Dec 2021.
P.S. To those who are from the US markets, the Bank Nifty Options in India market are the equivalent of SPY Options in the US market, very liquid and ongoing opportunities for good trades. Bank Nifty Options offer some of the best trading opportunities worldwide.
Please see this trend line analysis on Bank Nifty lifetime chart. This is a log chart, which captures the life chart very well. In technical terms, it can be considered a “wedge breakdown” that happened in Feb 2020, which is always going to be a fast and powerful correction. In this case, Bank Nifty futures lost 50% of their value in 6 weeks.
Going ahead, as the chart suggests, Bank Nifty futures will face strong resistance on their next upmove above 37K. In fact, there is a zone of resistance between 37-40K. And above 40K, Bank Nifty futures will race towards 50K. The most importance question is this: can we consider the current correction to be over, and 16K as the base that won’t get broken? Looks like yes, that’s the case. However, we may see correction till 28K even as part of the upmove.
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