Bank Nifty Trading Strategy: Expert Ganesh Dongre Reveals Profitable Options Approach for October 21

Today, Indian stock market indices like the Sensex and Nifty 50 are expected to start the week with caution due to mixed global market sentiment. On Friday, the domestic equity market closed higher, with the Sensex gaining 218 points (0.29%) and the Nifty 50 rising 104 points (0.42%). The Bank Nifty index outperformed, climbing 805.40 points (1.57%) to finish above the crucial 52,000 level at 52,094.20.

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, noted that last week, the Bank Nifty index hit its support zone between 50,000 and 50,500 after facing significant selling pressure following a gap-up opening. However, by the end of the week, it recovered and closed above the 52,000 resistance mark. If the Bank Nifty maintains a close above 52,000, it could move upward toward the 53,000 – 53,500 resistance zone, which aligns with the previous weekly high. He emphasized that 50,000 remains a critical support level, advising traders to be cautious if the index closes below 52,000.

Given that 52,000 is a key level, Ganesh Dongre suggests a Bank Nifty options trading strategy that will work if the index remains above 52,000 this week.

Here’s Ganesh Dongre’s Bank Nifty trading strategy for today:

Bull Call Spread

• Trade Structure:
  • Buy 1 lot of the 30th Oct expiry 52800 CE at CMP ₹286
  • Sell 1 lot of the 30th Oct expiry 53300 CE at CMP ₹144
    
• Trade Rules:
  • The capital needed for this trade is ₹20,000. You can enter this trade today if the Bank Nifty spot is trading above 52,000.
  • The maximum profit from this trade is ₹4,800, while the maximum loss will be ₹2,100.
  • The break-even point is above 52,800, and traders should consider booking profits near the resistance levels of 53,000 – 53,500.
  • Since this is a monthly expiry strategy, traders have two weeks to hold the position, increasing the chances of profitability.

This trade has a limited risk of ₹2,100 per lot, providing a structured way to capitalize on the Bank Nifty’s potential upward movement.