BankNifty PUTs & CALLs

[columbus]

DEC.11 DECseries Day.8 BankNifty=12344 (-37)

In DEC series, BankNifty (5U3D) closed like this:
UDUUUDUD

We follow the PUT and CALL windows with the boundaries, as :


DAY		                LOW~HIGH
========= 	                =========	
1  to 6 (FRI~FRI)          	40Rs to 400Rs
7  to 11(MON~FRI)	        35Rs to 350Rs
12 to 16(MON~FRI)               30Rs to 300Rs
17 to END(MON~THU)          	15~25Rs to 150~250RS

This is not based on ANY formula , but on just observations of last few days.

The Expected zone shrinked to (12700~12200) from (12800~12100) .
The present position of Bank Nifty is also indicated .

Repo (Repurchase) Rate
Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the demand
they are facing for money (loans) and how much they have on hand to lend.
If the RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate;
similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.

 

[columbus]

DEC.12 DECseries Day.9 BankNifty=12302 (-42)

In DEC series, BankNifty (5U4D) closed like this:
UDUUUDUDD

We follow the PUT and CALL windows with the boundaries, as :


DAY		                LOW~HIGH
========= 	                =========	
1  to 6 (FRI~FRI)          	40Rs to 400Rs
7  to 11(MON~FRI)	        35Rs to 350Rs
12 to 16(MON~FRI)               30Rs to 300Rs
17 to END(MON~THU)          	15~25Rs to 150~250RS

This is not based on ANY formula , but on just observations of last few days.

The Expected zone expanded downwards to (12700~12100) from (12700~12200) .

The present position of Bank Nifty is also indicated .

CRR

Also called the cash reserve ratio, refers to a portion of deposits (as cash)
which banks have to keep/maintain with the RBI. This serves two purposes.
It ensures that a portion of bank deposits is totally risk-free and secondly
it enables that RBI control liquidity in the system, and thereby, inflation by
tying their hands in lending money.By cutting CRR, the money will be
released into system.

 

[columbus]

DEC.13 DECseries Day.10 BankNifty=12269 (-33)

In DEC series, BankNifty (5U5D) closed like this:
UDUUUDUDDD

We follow the PUT and CALL windows with the boundaries, as :


DAY		                LOW~HIGH
========= 	                =========	
1  to 6 (FRI~FRI)          	40Rs to 400Rs
7  to 11(MON~FRI)	        35Rs to 350Rs
12 to 16(MON~FRI)               30Rs to 300Rs
17 to END(MON~THU)          	15~25Rs to 150~250RS

This is not based on ANY formula , but on just observations of last few days.

The Expected zone moved downwards to (12600~12100) from (12700~12100).

CRR

Also called the cash reserve ratio, refers to a portion of deposits (as cash)
which banks have to keep/maintain with the RBI. This serves two purposes.
It ensures that a portion of bank deposits is totally risk-free and secondly
it enables that RBI control liquidity in the system, and thereby, inflation by
tying their hands in lending money.By cutting CRR, the money will be
released into system.

 

[columbus]

DEC.14 DECseries Day.11 BankNifty=12425 (156)

In DEC series, BankNifty (6U5D) closed like this:
UDUUUDUDDDU

We follow the PUT and CALL windows with the boundaries, as :


DAY		                LOW~HIGH
========= 	                =========	
1  to 6 (FRI~FRI)          	40Rs to 400Rs
7  to 11(MON~FRI)	        35Rs to 350Rs
12 to 16(MON~FRI)               30Rs to 300Rs
17 to END(MON~THU)          	15~25Rs to 150~250RS

This is not based on ANY formula , but on just observations of last few days.

The Expected zone moved UP to (12800~12300) from (12600~12100).

Present position is also indicated.


CRR

Also called the cash reserve ratio, refers to a portion of deposits (as cash)
which banks have to keep/maintain with the RBI. This serves two purposes.
It ensures that a portion of bank deposits is totally risk-free and secondly
it enables that RBI control liquidity in the system, and thereby, inflation by
tying their hands in lending money.By cutting CRR, the money will be
released into system.

Repo (Repurchase) Rate
Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the demand
they are facing for money (loans) and how much they have on hand to lend.
If the RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate;
similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.

Reverse Repo Rate

This is the exact opposite of repo rate.
The rate at which RBI borrows money from the banks (or banks lend money to the RBI)
is termed the reverse repo rate. The RBI uses this tool when it feels there is too much
money floating in the banking system.If the reverse repo rate is increased, it means the
RBI will borrow money from the bank and offer them a lucrative rate of interest. As a result,
banks would prefer to keep their money with the RBI (which is absolutely risk free) instead
of lending it out (this option comes with a certain amount of risk) Consequently, banks would
have lesser funds to lend to their customers. This helps stem the flow of excess money into
the economy .Reverse repo rate signifies the rate at which the central bank absorbs liquidity
from the banks, while repo signifies the rate at which liquidity is injected.

 

[run_run]

UP ???? 12800~12300 Down ???

 

[columbus]

DEC.17 DECseries Day.12 BankNifty=12427 (2)

In DEC series, BankNifty (7U5D) closed like this:
UDUUUDUDDDUU

We follow the PUT and CALL windows with the boundaries, as :


DAY		                LOW~HIGH
========= 	                =========	
1  to 6 (FRI~FRI)          	40Rs to 400Rs
7  to 11(MON~FRI)	        35Rs to 350Rs
12 to 16(MON~FRI)               30Rs to 300Rs
17 to END(MON~THU)          	15~25Rs to 150~250RS

This is not based on ANY formula , but on just observations of last few days.

The Expected zone condensed to (12700~12300) from (12800~12300).

CRR

Also called the cash reserve ratio, refers to a portion of deposits (as cash)
which banks have to keep/maintain with the RBI. This serves two purposes.
It ensures that a portion of bank deposits is totally risk-free and secondly
it enables that RBI control liquidity in the system, and thereby, inflation by
tying their hands in lending money.By cutting CRR, the money will be
released into system.

Repo (Repurchase) Rate
Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the demand
they are facing for money (loans) and how much they have on hand to lend.
If the RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate;
similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.

Reverse Repo Rate

This is the exact opposite of repo rate.
The rate at which RBI borrows money from the banks (or banks lend money to the RBI)
is termed the reverse repo rate. The RBI uses this tool when it feels there is too much
money floating in the banking system.If the reverse repo rate is increased, it means the
RBI will borrow money from the bank and offer them a lucrative rate of interest. As a result,
banks would prefer to keep their money with the RBI (which is absolutely risk free) instead
of lending it out (this option comes with a certain amount of risk) Consequently, banks would
have lesser funds to lend to their customers. This helps stem the flow of excess money into
the economy .Reverse repo rate signifies the rate at which the central bank absorbs liquidity
from the banks, while repo signifies the rate at which liquidity is injected.

 

[columbus]

DEC.18 DECseries Day.13 BankNifty=12477 (50)

In DEC series, BankNifty (8U5D) closed like this:
UDUUUDUDDDUUU

We follow the PUT and CALL windows with the boundaries, as :


DAY		                LOW~HIGH
========= 	                =========	
1  to 6 (FRI~FRI)          	40Rs to 400Rs
7  to 11(MON~FRI)	        35Rs to 350Rs
12 to 16(MON~FRI)               30Rs to 300Rs
17 to END(MON~THU)          	15~25Rs to 150~250RS

This is not based on ANY formula , but on just observations of last few days.

The Expected zone expanded to (12800~12300) from (12700~12300).

 

[Riya D]

Dear Columbus, I must say your posts are really helpful :clapping:! And as far as Bank Nifty is concerned, as we saw today, bank stocks recovered smartly in trade even as RBI move disapppointed and with Parliament passing bill to draw investment into banks might just rally again:thumb:

 

[columbus]

DEC.19 DECseries Day.14 BankNifty=12510 (33)

In DEC series, BankNifty (9U5D) closed like this:
UDUUUDUDDDUUUU

We follow the PUT and CALL windows with the boundaries, as :


DAY		                LOW~HIGH
========= 	                =========	
1  to 6 (FRI~FRI)          	40Rs to 400Rs
7  to 11(MON~FRI)	        35Rs to 350Rs
12 to 16(MON~FRI)               30Rs to 300Rs
17 to END(MON~THU)          	15~25Rs to 150~250RS

This is not based on ANY formula , but on just observations of last few days.

The Expected zone expanded to (12800~12200) from (12800~12300).
Both CALL window and PUT window coincided as shown.

 

[columbus]

DEC.20 DECseries Day.15 BankNifty=12487 (-23)

In DEC series, BankNifty (9U6D) closed like this:
UDUUUDUDDDUUUUD

We follow the PUT and CALL windows with the boundaries, as :


DAY		                LOW~HIGH
========= 	                =========	
1  to 6 (FRI~FRI)          	40Rs to 400Rs
7  to 11(MON~FRI)	        35Rs to 350Rs
12 to 16(MON~FRI)               30Rs to 300Rs
17 to END(MON~THU)          	15~25Rs to 150~250RS

This is not based on ANY formula , but on just observations of last few days.

The Expected zone contracted to (12700~12300) from (12800~12200).