The expert stock advisors at Multibaggers.co.in provide the best bank nifty intraday tips to gain more profits with proper money management. Intraday trading can be done both in bank nifty as well as nifty. The three most significant terms are described in the following for a better understanding:
Intraday Trading: Settling the trade the same day.
Options: It provides right to buyers and obligation to sellers. For buyers the right to buy the underlying before the expiry date. For sellers, the obligation to sell if an option is exercised.
Bank Nifty: Bank Nifty represents the 12 most liquid and large capitalised stocks from the banking sector which trade on the National Stock Exchange (NSE). It provides investors and market intermediaries a benchmark that captures the capital market performance of the Indian banking sector.
METHOD FOR BANK NIFTY INTRADAY OPTION TRADING
The Intraday Bank Nifty Options should be done on the basis of analysis of Bank Nifty Cash and not just the options prices. Trading process is not the same stock and options. For Options trading you need to Analyse both Options as well as Underlying assets. Analysis of options requires greek analysis.
Analysis of underlying can be done through the factors given as follows:
1. Price Fluctuations: A price fluctuation is when a stock’s price is moving up or down in price. The typical investor assumes that this is the best time to buy or sell their stocks, but they are mistaken. The best time to make a transaction occurs after the price fluctuation ends.
To explain this concept, we will use the bank Nifty options because they have one of the best fluctuations and it can be used as an example for other stock options as well. If a person purchases bank Nifty options at a low point during a fluctuation, then they have purchased an option to buy shares at an inexpensive rate related to historical levels. If the share price later moves back up, there is no need to buy anymore options because the share price has
2. Volume: Volume would always be the first one that comes to mind. Do Volume analysis when you’re trading options. The reason for this is simple. When trading, price and volume work hand in hand together. There is always a thin line between price and volume, which means you can never ignore the magnitude of volume altogether.
Volume tells us whether a stock is active or not. If it is busy, the chances of entry and exit are more because the price can move easily in either direction with good volume. We have to calculate both the Up Volume and Down Volume.