The Bank Nifty is poised to give a 1000 point move. Be ready: Experts

Discussion in 'Traders Corner' started by Michael Gonsalves, Oct 10, 2022.

  1. Michael Gonsalves

    Michael Gonsalves Member Staff Member

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    The Bank Nifty is well known for its whimsical movements. Traders who are in its right side stand to make a lot of money. Experts have predicted that it is on the verge of making a dramatic movement of at least a 1000 points & have advised us to be prepared to reap the benefits

    Trader Ghanshyam is amongst the few traders in Dalal Street who has a good understanding of the ways of the Bank Nifty. He has been able to make large sum of money using the "9.20 strategy" and the "Missile strategy". His annualized income is estimated to be about Rs 17 crore.

    In his latest video, Ghanshyam explained that the two crucial levels that we have to watch out for are 38500 on the downside and 39700 on the upside. If either of these levels are breached in a decisive manner, the Bank Nifty will either plunge or surge by at least 1000 points, he said.

    He advised that we should not take positional trades until these levels are breached. Assuming 39700 is breached, we can go long with a stop loss of 39400.

    He emphasized that for day traders, the last day's high, low and closing are very important factors to be borne in mind. Today's high of 39333 will be the first resistance for the Bank Nifty. Similarly, if the Bank Nifty opens gap down, then today's closing of 39079 will prove to be a resistance. If that is breached, we can go long for a target of 39300.

    On the other hand, if the Bank Nifty opens gap up, then today's close will prove to be a strong support.

    Ganshyam offered other valuable pointers as to what we should do if there is either a big gap up or gap down or if the trend lines are breached.



    Scalper Vijay Thakre expressed a similar view as that of Ghanshyam. "A sharp move either side in Bank Nifty coming in a day or two as per observation. 39700 break can see 41000-41500 and 38500 break can see 37500-36800," he said in plain terms.

    It should be noted that Thakre has pinpointed the same levels of 38500 and 39700 as being the pivotal levels which can cause a strong movement in the Bank Nifty.



    Vijay Thakre's proficiency in the Bank Nifty is well known. He recently made a gain of Rs. 20 lakh from a capital of Rs. 40 lakh in a single day scalping trade.

    So, the situation is that we have to keep a look out as to whether the stated levels are likely to be breached and take appropriate positions by buying either Bull-Call spreads or Bear-Put spreads, as the case may be.
     
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