Multi-timeframe analysis of Nifty bank 17-01-2022 to 21-01-2022

Nifty bank: a week a candle

Bank nifty on weekly chart is looking bullish and HDFC bank has posted good Q3 result. We can see long build-up above 38500 levels. But there is still negative news about COVID 19 third wave and we can see sell-on-rise at some upper levels between 39500 and 40000. Also, Budget 2022 season will influence the market movement and we can see spike in India VIX.

Nifty bank: a day a candle

Bank nifty on daily chart is rejecting the lower levels by supporting 38000 level and made a bullish candlestick (Dragonfly). If there is another big green candle then you can make long position above 38500 for the target of 39500 to 40000.

Nifty bank: 15 minutes a candle

If Bank nifty trade above 38500 then short covering happens and we can see the upside fast movement. If Bank nifty trade below 38000 then we can see bounce-back or short target at lower levels as there are many support levels. If opens gap down then look for bullish trade, only by recognizing price action or bullish candlestick pattern. If opens gap-up then wait for the range to break and then trade the range for upside, only. It is suggested to avoid trade on bearish side as many big banks are going to post their Q3 result and it is expect that the results will be good and as per market expectation.

Comparison between long position vs. short position

Refer this for more

Trader's Perception in Futures and Options

All Futures and options trading strategies

LONG POSITION	SHORT POSITION
You make money when price goes up.	You make money when price goes down.
You buy an instrument at lower price, which you predict to go up. Then you sell at higher price, if you made expected profit.	You borrow an instrument from broker and sell it, which you predict to go down. Then buy the same instrument to clear/level the account with the broker.
Buy Futures of the Index, Buy Call (CE) options of the Index, Sell Put (PE) options of the Index	Sell Futures of the Index, Sell Call (CE) options of the Index, Buy Put (PE) options of the Index
Buy a stock, Buy Futures of the stock, Buy Call (CE) of the stock, or Sell Put (PE) of the stock	Sell a stock, Sell Futures of the stock, Sell Call (CE) of the stock, or Buy Put (PE) of the stock
You Buy the Futures, Buy Call (CE) options, and Sell PUT(PE) when price goes upwards in fast manner.	You Sell the Futures, Sell Call (CE) options, and Buy PUT(PE) when price goes downwards in fast manner.
When price do not change much, then Sell OTM Call (CE) in Options segment	When price do not change much, then Sell OTM Put (PE) in Options segment