Just after the budget, i posted Bank on Banking and recommended a Long strangle with the upside target of 14650 and surprisingly it is achieved in just 2 sessions. Bank has proved its characteristic of being Lender of Last Resort but it was profits this time. Had been recommending PSU banks and specially SBI and BoB as a budget pick on various social media and TV Shows. Both of them has given run of their life in last two days which led Nifty Bank crossing downside channel convincingly on the upside. Even the positive divergence on my last post has worked out well. But now it shall approach small resistance at 50 day average which is around 15300-15400. RSI is surely suggesting upside but we may witness minor wave correction which could be steep one. Looking at the global markets and the strength of buying in cash markets, we can be biased to be still holding long for the upside in coming days. So stay long on Banking Stocks and index
Buy 15100 CE and Sell 15500 CE: Net Payout =422-248=174
Exit 15100 CE on my tgt of 15350 on Nifty Bank.