The 12 highly liquid and capitalised equities in the banking industry are tracked by the Bank NIFTY index. Launched in 2009, this index sees a lot of trading on the stock market. Bank NIFTY trading is a popular source of income for traders.
There are numerous trading techniques that have been established by traders who specialise in trading Bank NIFTY options. Bank NIFTY trading advice, tutorials, and other resources are now widely available on the market.
There are various advantages and disadvantages to Bank NIFTY. Due to its extreme volatility, Bank NIFTY is appealing to traders seeking quick gains.
Price spikes are more frequent. Bank NIFTY's profit margin of over 2-3% per trading day appeals to intraday traders as well.
The only trading day for this Bank NIFTY option strategy is the current one. First, in your charting programme, make a 5-minute Candle chart.
Decide where your strategy will start. Choose a place where either the bullish or bearish first two candles are present. You will place the purchase order at the high of the second candle if the first two candles are bullish.
Before opening the market at a smaller gap, you must wait for the gap on the chart to close (a jump to a lower closing price than the previous day).
The moment a candle fills the gap, you place a sell order. Analysts and trend analyses anticipate that the price will decline from here.