BANK NIFTY 301113

The Index found a strong support around its neckline area of 10400 and witnessed bounce back. It broke the resistance area of 10800 and consecutively closed above the said mark in a recent past. On a daily chart it just managed to close above its uptrend resistance line. On  a weekly chart too it formed a Bullish Engulfing Pattern. With other indicators too looking Bullish we expect that the Index might commence its uptrend and can kiss the 11500-11700 level in a short term. On a conservative side we recommend Bull Spread Strategy for the Index.

Buy 11200 Dec. CE at Rs.425 and Sell 11500 Dec. CE at Rs.280. 

Max. Loss per lot Rs.3625 (145*25) per lot

Max. Profit Rs.3875 (155*25) per lot

Bank Nifty 9112013

The Index is facing resistance around 11750 level. On a weekly chart it has formed a Bearish Engulfing Candlestick. On a daily chart it just found support around its uptrend line. On the downside 10650 is the major support for the index. At current level as per the daily chart all indicators have turned Negative.The index is looking tired, though we need to wait for the follow up moves. Considering all these facts we suggest that traders can try Bear Spread Option Strategy.