1. Nifty Bank is only Bullish for one sided direction is above 37700 (Thick Blue line). You can buy ATM/ITM CE to grab fast 100-200 or more points.
2. Nifty Bank is only Bearish for one sided direction is below 36800 (Thick Red line). You can buy ATM/ITM PE to catch 200-300 or more points.
3. My view is that market will be volatile with ups and downs between the range of 37000-37500, let the market cross this range and then look for the opportunity to trade.
After a bullish trend in Banknifty, it seems Banknifty is bearish and oversold level. 36800-36900 is a strong support level and Banknifty may turn upwards from the mentioned level. Be attentive with the FOMC meeting conclusion and Japanese financial news and Chinese Reality sector news. Our market will react to these three news. If Banknifty breaks 36800 then next support is 36500 levels and 36000 psychological levels. Let see what will happen in the market, tomorrow. I recommend to avoid trade but if you want then do it in small quantity as scalping trade.
As depicted in below image, you can trade accordingly
1. If Banknifty (15 minute candle) crosses 37950 level then you can buy 38000 CE for 100 points or more, trail the stoploss with the up move.
2. If Banknifty (15 minute candle) crosses 37450 level then you can buy 37500 PE for 200 points or more, trail the stoploss with the down move. My suggestion is to avoid trading for PUT or downside movement, it may be a trap because Banknifty trend is Bullish.
3. Avoid trading in the range between 37950-37450, because it is a trap zone, but you can do scalping trade for 5% +, only.
Banknifty is again in parallel channel:
Banknifty Daily View (a day a candle):
Banknifty is trading above 37500 levels, exactly at 37800. But in the last trading day it resists 38100 levels and goes down to 37450 levels. Banknifty may consolidate for few days between 38050 and 37450 levels. If breaks either 38050 levels then we can see blasting up move of 700-800 points or breaks 37450 levels then we can see downfall of 750-850 points.
Banknifty Weekly View (a week a candle):
On weekly basis, Banknifty is trading above the BLUE trend line and has Bullish view in short term. It seems that Banknifty will go up to 40000-42000 levels in the near short term (this month or the next month i.e. October). The maximum Call OI has developed on the levels of 38000 levels, if Banknifty trades above it then we can see drastic short covering which will take the Banknifty to 39000 levels in the next week. Banknifty will be only Bearish when it breaks the RED trend line i.e. 36500-36000 levels.
1. Positional Trading Style: This is a long term trading style for which a stock market instrument is taken for few months or years for good gains of 50% to 100% or more.
2. Swing Trading Style: This is a short term trading style for which a stock market instrument is taken for few days or weeks for expected profit of 5% to 10% more more.
3. Day Trading Style: This is also known as intraday trading for which a stock market instrument is taken for a day (no carry forward position) for 1% to 2% or more gains.
4. Scalp Trading Style: This is an extremely short term based trading style for which a stock market instrument is taken for few seconds or minutes to get good gains.