A short squeeze-backed rally had pushed the Bank Nifty index up by 700 points, crossing the psychological mark of 51,000. This marks a resurgence in the banking sector after it underperformed compared to Nifty last week. At 10:14 am on June 19, Bank Nifty was trading up 650 points at 51,045. The short squeeze above the 50,600 strike fueled the rally to 51,000. However, profit booking erased early gains, and by 10:30 am, Bank Nifty futures fell steeply back to the 50,600 support zone.
The top five Nifty gainers were all from the private banking space: IndusInd, ICICI, Kotak, HDFC, and Axis.
"Banknifty has hit a new all-time high and stability over 51200 could steer more upside for today. On the downside, support of 50600 remains a neckline for upward bias. The underlying trend for today remains bullish, " said Avdhut Bagkar, Derivative and technical analyst at Stoxbox.
Expiry day strategy recommended by Bagkar:
Hero-Zero Strategy:
Long Bank Nifty 19 June 51,000 CE at around Rs 65
Stop Loss: Rs 0
Target: Rs 150 and Rs 200
According to Akshay Bhagwat, Senior Vice President of Derivative Research at JM Financial, "Bank Nifty is nearing its all-time high where it faced intra-resistance at 51,200. Options are sold to play within the range of 50,500-51,200. Any breakout risk above 51,200 will be hedged by buying 51,500 CE."
Expiry strategy recommended by Bhagwat:
Bank Nifty Expiry Day Strategy for June 19
SELL 50,500 PE at Rs 60-65
SELL 51,400 CE at Rs 40-50
BUY 51,500 CE at Rs 25-30
Target: 70-75 points
Stop Loss: Below 50,300 (Spot)
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