Sharp Traders earn Rs 1.4 Cr Profit in panic selling of the Bank Nifty

Discussion in 'Traders Corner' started by Michael Gonsalves, Jan 26, 2023.

  1. Michael Gonsalves

    Michael Gonsalves Member Staff Member

    Jun 26, 2016
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    Yesterday's panic selling took many traders by surprise. However, it was a simple matter of systematically watching key levels & going short on its breach. One trader made Rs 1.4 Cr on that basis

    Ghanshyam had predicted panic selling on the eve of expiry

    Ghanshyam is well known for his sharp thinking. On Tuesday, 24th January, he had warned that the technicals are reflecting weakness in the market and that there would be panic selling by the Bulls if the level of 42400 was breached.

    "Bank Nifty ne bearish engulfing candle banayi hai aur ye negative hai," he said.

    "42400 trend line resistance hai aur agar yeh break ho jaata hai toh hum 41600 ke level dekh sakte hai," he added.

    Ghanshyam also painstakingly drew attention to the main stocks in the Bank Nifty such as HDFC Bank, SBI etc and explained how they were all precariously placed closed to their support levels.

    Ghanshyam also provided commentary (at 0938 hrs and later) after the market opened as to how the situation was developing and what are the levels of support and resistance that we have to watch out for. He reiterated that 41600 was a key level and its break would cause a further downfall.

    The Bulls were trapped. The Adani report exacerbated the situation

    Expiry days see great action because the desperate exit of traders who are caught on the wrong side causes a stampede and prices of Calls and Puts explode.

    We could see this in a vivid manner. As soon as the markets opened, the Bulls were thronging the exit and were sending the Indices spiraling downwards. The Bank Nifty opened at 42733 and the first five minute candle itself closed at 42573.

    Even if we would have gone short at the break of 42400 as advised by Ghanshyam, we would have still made a fortune because the Bank Nifty ultimately closed at 41687, a whopping 700 points down.

    Trader Subashish Pani made Rs 1.4 crore

    Subashish Pani is also well known for his sharp trading skills. When he saw the market plunging, he bought a truckload of Puts and raked in a massive fortune of Rs. 1.4 crore.

    However, he fairly disclosed that he was undergoing a draw-down and has only now managed to recover his past losses.