BankNifty PUTs & CALLs

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NOV series Day.1 (Start) BankNifty=11509 (-105)

In NOV.series BankNifty moved this way:
D

We follow the PUT and CALL windows with the boundaries, as follows.


DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs~400Rs
8  to 14	30Rs-300Rs
15 to END 	20Rs~200RS

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

Now the Expected zone stands at (11400~11800) looking
at previous trading day's data.

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.

 

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NOV series Day.2 BankNifty=11472 (-37)

In NOV.series BankNifty moved this way:
DD

We follow the PUT and CALL windows with the boundaries, as follows.


DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs~400Rs
8  to 14	30Rs-300Rs
15 to END 	20Rs~200RS

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

Now the Expected zone stands at (11400~11800) looking
at previous trading day's data.[No change]

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.If CRR is cut
a lot of money comes into market

 

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NOV series Day.3 BankNifty=11203 (-269)

In NOVseries Day.3 BankNifty (3D-0U) moved this way:
DDD

We follow the PUT and CALL windows with the boundaries, as follows.


DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs~400Rs
8  to 14	30Rs-300Rs
15 to END 	20Rs~200RS

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

Now the Expected zone moved rather badly at (11000~11500) from (11400~11800).

May be due to the cut of RBI ,FY13 GDP forecast to 5.8% from 6.5%.But whereas other cut of CRR by 25 bps ,which infuses 17,500Cr
liquidity is not favoured .


Present Rates:

CRR...................4.25% (from 4.5%)
REPO.................8%(UC)
Reverse Repo......7%(UC)

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.

 

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NOV series Day.4 BankNifty=11269 (66)

In NOV.series Day.4 BankNifty (3D-1U) moved this way:
DDDU

 

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NOV series Day.5 BankNifty=11315 (46)

In NOV.series Day.5 BankNifty (3D-2U) moved this way:
DDDUU

We follow the PUT and CALL windows with the boundaries, as follows.


DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs~400Rs
8  to 14	30Rs-300Rs
15 to END 	20Rs~200RS

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

The Expected Zone stands at (11700~11100)

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.

 

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NOV series Day.6 BankNifty=11460 (145)

In NOV.series Day.6 BankNifty (3D-3U) moved this way:
DDDUUU

We follow the PUT and CALL windows with the boundaries, as follows.


DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs to 400Rs
8  to 14	30Rs to 300Rs
15 to END 	15~25Rs to 150~250RS

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

The Expected Zone stands at (11800~11300) from (11700~11100)

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.

 

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NOV.5 NOVseries Day.7 BankNifty=11475 (15)

In NOV.series Day.7 BankNifty (3D-4U) moved this way:
DDDUUUU

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


DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs to 400Rs
8  to 14	30Rs to 300Rs
15 to END 	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 (11900~11200) from (11800~11300).

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.

 

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NOV.6 NOVseries Day.8 BankNifty=11539 (64)

In NOV.series Day.8 BankNifty (3D-4U) moved this way:
DDDUUUUU

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


DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs to 400Rs
8  to 14	30Rs to 300Rs
15 to END 	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 (11800~11500) from (11900~11200).
[This could be as well to change in zone as we entered 8th day of the series}

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.If CRR is cut
a lot of money comes into market

 

[columbus]

NOV.7 NOVseries Day.9 BankNifty=11665 (126)

In NOV.series Day.9 BankNifty (3D-6U) moved this way:
DDDUUUUUU

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


DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs to 400Rs
8  to 14	30Rs to 300Rs
15 to END 	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 (11900~11500) from (11800~11500).

Call Rate
Call rate is the interest rate paid by the banks for lending and borrowing for daily fund requirement. Since banks
need funds on a daily basis, they lend to and borrow from other banks according to their daily or short-term
requirements on a regular basis.

 

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NOV.8 NOVseries Day.10 BankNifty=11613 (-52)

In NOV.series Day.10 BankNifty (4D-6U) moved this way:
DDDUUUUUUD

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


DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs to 400Rs
8  to 14	30Rs to 300Rs
15 to END 	15~25Rs to 150~250RS

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

The Expected zone did not move from (11900~11500) .

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.If CRR is cut
a lot of money comes into market