Live Bank Nifty Option Trading 📈 | Intraday Trading by Intraday Hunter

Summary

In this video, the speaker analyzes market trends, focusing on Sussex, Nifty, and Bank Nifty. He explains a trading strategy based on market psychology, highlighting the significance of retracements, momentum, and the behavior of sellers and buyers. The speaker discusses how they positioned their trades, including buying call options, and anticipated market movements. Despite some initial losses, their analysis leads to a profitable trade, with Bank Nifty reaching the expected target. The strategy emphasized understanding market psychology, recognizing turning points, and avoiding greed for a successful outcome.

Takeaways

• 😀 The market opened almost flat but showed positive momentum, similar to Bank Nifty and Nifty.
• 😀 The initial red candles were seen as a potential benefit, signaling possible momentum after retracement.
• 😀 The first big green candle in the market led to further buying activity from other traders, potentially triggering retracements or rejections.
• 😀 Traders expecting big targets would have held their positions even during small retracements, anticipating larger momentum.
• 😀 Expiry day in Sussex created an opportunity for traders to target the stop losses of sellers with large targets.
• 😀 Retail traders struggled to participate in fast market movements due to fear, leaving opportunities for continuation in upside momentum.
• 😀 The combination of retracements and a breakout could result in significant profit, especially if the market continued to move upward.
• 😀 The psychology of sellers expecting a large target helped set up a potential breakout after a retracement in Bank Nifty.
• 😀 The market's behavior was interpreted as a trap for those holding positions in the wrong direction, with an eventual upside momentum expected.
• 😀 Although Sussex and Nifty lagged behind, Bank Nifty provided decent profits, confirming the initial analysis and trade decision.
• 😀 The final decision to exit was based on positive momentum and without greed, booking a profit from the predicted target, especially in Bank Nifty.

Q & A

What is the general market trend observed at the beginning of the session?

The market opened almost flat, with positive momentum seen shortly after the opening in both Bank Nifty and Nifty.

Why is the trade being made on the call side in the script?

The trade is being made on the call side because, despite some red candles appearing, the market showed a strong green candle at the start, and there was a retracement, suggesting potential upside momentum.

What role does psychology play in the trade decision-making process?

Psychology plays a crucial role, as the trader anticipates the reactions of other participants. For example, after seeing a large green candle, other traders may start buying, leading to potential market exhaustion and retracements, which the trader uses to make decisions.

Why does the trader expect further momentum despite losses at the start?

The trader expects further momentum because, based on psychological analysis, the market is likely to move upward after breaking key resistance levels and due to the presence of sellers with large stop-loss orders that can be targeted.

What factors influence the trader’s belief that a breakout could occur?

The trader believes a breakout could happen because of the type of selling in the market, where sellers who are targeting larger moves would likely remain in their positions, thus leaving them vulnerable to being trapped as the market moves against them.

How does the trader identify where stop-losses might be located in the market?

The trader identifies likely stop-loss areas by observing the positions of sellers who have entered the market expecting a larger move. These stop-losses are likely placed around key levels, such as 82,000 or slightly above.

Why is expiry in Sussex mentioned, and how does it affect the trade strategy?

The expiry in Sussex is important because it adds an element of risk, with potential rotation in the market. The trader takes this into account while setting their expectations for momentum and market direction, knowing that the expiry can cause sudden market shifts.

What is the significance of observing candle types in market analysis?

The type of candles, such as fast-moving green or red candles, helps the trader gauge market sentiment. For example, a large green candle followed by retracement might signal that the initial buying momentum has been exhausted and could lead to further market movement.

What does the trader expect to happen when sellers’ stop-losses are triggered?

When sellers' stop-losses are triggered, the trader expects a sharp upside momentum, as these stop-losses would fuel buying, adding momentum to the market.

Why does the trader close the trade once a good profit is made, despite Sussex and Nifty showing slower momentum?

The trader closes the trade once a good profit is made to avoid further risk and because of the uncertainty of Sussex and Nifty, which were lagging behind Bank Nifty. The trader avoids further greed and books profits when the market shows positive momentum in Bank Nifty.