Get free Nifty and Bank nifty trend before market open daily for easy Nifty Option chain analysis

1. Get free Nifty and Bank nifty trend before market open daily for easy Nifty Option chain analysis

2. Option trader should first know what Option chain is and then know how to use it in real practice. Trader can apply in stock options or index options like Nifty and Bank nifty. These are generally a list of contracts available for a particular security. Due to lack of fundamentals many derivative traders like future and options trader lose money. So we will discuss step by step how to analyze. Derivative segment is 2 types. One is Future contract and other is Option contract. In option there are 2 contracts which are Call Option and Put Option. To better understand we will discuss about Nifty index option. One thing traders should know that after technical analysis you can get trend and after getting trend if you will do Nifty Option Chain analysis then it becomes easier. Because Nifty option chain only provides a series of option contracts to choose high volume contracts but can’t indicate trend. So Option and Future traders in India can get FREE Nifty Trend and Bank Nifty trend before market open posted daily here. Lot of Option trader depends upon it. After getting trend Nifty Option chain trader search high volume Call and Put contracts to select. Here you can find the Bid and ask price with volume as shown in below image.

4. Many trader think Option chain indicates trend but this is not true. In above Nifty Option chain image you can find it indicates where the concentration of traders is more. Let’s say Nifty is near 11500. Watch if the volume and the open interest are highest in 11800 call contracts then this act as resistance for market and trader should expect Nifty to move under 11800 levels. Like this if the volume and open interest is highest in 11200 put then 11200 will act as support for market. Option chain only indicates range of market and acts good for positional trader but for Intraday trading trader must watch free Nifty Trend and Bank Nifty trend to get trend first. After getting trend you can decide to buy call option or put option and then choose option contract to trade. In Option Chain it is always advisable to choose At the Money contract or In the Money contract which price is more than 100. Here question arises why? Let’s take an example. Example Let say trader “A” has taken Call option contract having price Rs 100/- which is out of money. Another trader “B” has taken Call option having price Rs 30/- and Nifty move up 20 points. Now trader “A” call option will increase to Rs 115/- and trader “B” option price will increase 33/-. Now trader “A” has flexibility and he can exit any time with profit. But trader “B” will remain in market and get trapped due to psychology. Here technical analysis plays an important role. So always first check free technical trend of Nifty and Bank nifty posted @8.45 am daily.

5. Important term used in option trading. At the Money- In this contract the market price and strike price is same. Let’s say current market price is 11800 then At the Money strike price is 11800. In the money- In case of Call and Put find the strike price from where the price is increasing from current market price. Let say market price is 11500 then in above image 11450, 11400, 11350 are in the money Call option and 11550, 11600, 11700 are “In the money” Put option. Out of Money- In case of Call and Put find the strike price from where the price is decreasing from current market price. In below image 11550, 11600, 11700 are “Out the money” Call option and 11450, 11400, 11350 are Out the money Put option.