From the above chart, there is clear possibility that Bank Nifty may rebound and test 25300-25400 level. (See the chart below)
I have bought one lot of Bank Nifty Future March expiry at 24919 level. See how it turns out. In order to control risk, I have also sold one lot of Bank Nifty 25100 call 28 March expiry @269.
Now as of now, I’m losing in this trade around INR 7537. Now, the time value of money will dissipate fast and the price of option will go down further in the next 4-5 days and so I’ll gain in this position further. Suppose, it goes down to INR 50, my total gain from this position should be 8400 Rs.
If the Bank Nifty rebounds 300-400 points, It will be at my buying price or cross slightly resulting in some gain.
However, this is an optimistic analysis. What market does will be revealed in the next week and I’ll update whatever will happen honestly with proof.
Will update about the result soon.