Everything you need to Know about Bank Nifty Trading Strategy 2022

Bank Nifty Trading Strategy
Bank Nifty Trading Strategy

Updated August 15, 2022 – Bank Nifty: Bank NIFTY is an index that tracks the 12 most liquid and high-capitalized stocks in the banking sector. This index was launched in 2009 and is heavily traded on the stock exchange. Many traders make a living trading in Bank NIFTY. Many traders who specialize in trading Bank NIFTY options have developed a variety of trading strategies. The market is now dotted with Bank NIFTY tips, tutorials, and other information on how to trade Bank NIFTY.

This article will give you a brief summary of two Bank NIFTY options trading strategies. It will also provide Bank Nifty Level and Bank NIFTY tips that could help you make better trades in the future.

Bank NIFTY has many pros and cons. Bank NIFTY’s high volatility makes it attractive to traders looking for quick profits. Price jumps are more common. Intraday traders also find Bank NIFTY attractive because it has a profit margin of more than 2-3% per trading day. Bank NIFTY is extremely risky because of this volatility. Simply put, the price of NIFTY is subject to fluctuations and if you can’t keep up with them, your chances of losing are increased.

Let’s keep this in mind. We will be looking at the Bank NIFTY and Bank NIFTY options, as well as some trade tips.

There are lots of Bank Nifty Trading Tips Strategy But works mainly 2 Strategy in this article Stock Market Today discuss 2 Strategy of Bank Nifty Trading so read the whole article carefully.

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1. Strategy

This Bank NIFTY option strategy is only applicable to intraday trade. First, create a 5-minute Candle chart in your charting program. Select the starting point of your strategy. Pick a point at which the first two candles are either bullish or bearish. If the first two candles are bullish you will place the buy order at the high of the second candle.

After this triggers, the stop-loss order must be placed at the same candle’s low. You can also place your order for bearish candles by placing your buy order at the low candle and the stop-loss order as a buy order at the high candle.

This strategy can also be implemented using a bracket order. Your stop-loss order in this instance is 40% of the height of your candle. We are trying to achieve a 1:1 ratio, so the target order is set at twice the candle’s height. If the candle’s height is 40 points, the target order should be placed at 80 points. Important to remember is that both bullish candles must be placed only if you place sell orders, and vice versa for bearish candles.

2. Strategy

This strategy can be divided into two parts: Sell trades and Buy trades.

A. Trade

You must wait for the chart’s gap to close before you open the market at a gap lower (a jump to a lower closing price than the previous day). You place a sell order when a candle fills the gap. Trend studies and analysts predict that the price will drop from this point. This protects you from a price drop by placing a sell order.

B. Trade

This Bank NIFTY options trade strategy was created for market openings that are up. You wait for the market to open at a gap upwards and place a buy or sell order. Contrary to what you were told to do in the “sell trade” section, the price will rise and you may turn a profit. The gap is typically filled in a day. However, another tip from Bank NIFTY states that you can wait for the gap to fill up in the next few days before placing your orders.

These Bank NIFTY option tips include the important step of setting your targets and stopping losses. Chart a horizontal line starting at the close of the closing candle to determine where your stop loss and target should be. This is the place where you place your buy orders. Once the market closes, the buy order will be fulfilled. The low point of the closing candle should be the stop loss. Another tip, similar to the Bank NIFTY options trading strategy is to set the target twice the height of your candle. If the candle has 50 units, you should set your target at 100. You wait until the next gap if it falls below 100 This can be done with a 15-minute Bank Nifty Live chart.

INTRADAY OPTION STRATEGIES

· Price Action Trading

· Pair Trading on Nifty and Bank Nifty

· Short Straddle Strategy on Bank Nifty

· Short Straddle Adjustments

· Short Strangle Strategy on Nifty

· Short Strangle Adjustments

· Secret BTST strategy

WEEKLY OPTION STRATEGIES

· Ratio Spread Strategy on Bank Nifty

· Double Calendar Strategy on Nifty Weekly Options

· Double Calendar Adjustments

· Short Straddle Weekly Options Strategy on Bank Nifty

· Short Straddle Adjustments

· Iron Condor Strategy on Bank Nifty

· Iron condor Adjustment

MONTHLY OPTION STRATEGIES

· Double Calendar Strategy on Nifty Monthly Option

· Pair Trading Strategy on Monthly Options

· Bull Call Spread Strategy on Bank Nifty

· Bull Call Spread Adjustments

· Iron Butterfly on Nifty Monthly Option

· Iron Butterfly Adjustments

Conclusion

Bank NIFTY is a good script for investors who want to quickly make a profit. Its volatility can make investments riskier. There are many ways to trade Bank NIFTY options. You can make more money by using the best Bank NIFTY tips, Bank NIFTY trading strategies, and Bank NIFTY trading strategies.

Disclaimer: The views and investment tips expressed by investment experts on Stock Market Today are their own, and not that of the website or its management. Stock Market Today advises users to check with certified experts before taking any investment decisions.

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