Bank Nifty RSI Option Buying Strategy is an easy and great strategy. Every trader learns to use it easily. Its special thing is that its returns are tremendous. RSI gave a great return in the second half on January 5. See complete details.
Bank Nifty RSI Option Buying Strategy
Nowadays the craze of option buying is increasing rapidly in the Indian stock market. In option buying, people work with many strategies, among which the RSI option buying strategy is prominent. This strategy gave excellent returns to the traders last Friday i.e. 5 January 2024. Let us know how much return the RSI option buying strategy gave on Friday.
RSI Option Buying Strategy Return on 5 January 2024
On January 5, 2024, at 2:15 RSI Strategy gave a buy signal. According to the RSI Strategy, if a trader had bought Bank Nifty at 47880, then according to the RSI Option Buying Strategy his stop loss would have been 47820 i.e. only 60 points. If we talk about the target then the target would have been 48256 i.e. 376 points which is a great return. see the chart below.
BANKNIFTY 47800 CE expiry 10 Jan 2024
If a trader had bought a call of 10 Jan weekly expiry of Rs 47800 whose premium at 2:20 pm was Rs 306, his stop loss would have been only Rs 28. Whereas, if he had booked his target while crossing the RSI oversold line, he would have got 325 points.
If a trader had placed 900 quantities (ie approximately Rs 270000), he would have made a profit of approximately Rs 3 lakh (900*325=292,50) in just 40 minutes. So you see that if you understand the Bank Nifty RSI Option Buying Strategy then it is very profitable.
What is RSI?
The RSI is a popular trading indicator called the Relative Strength Index. It is called J. Developed by Welles Wilder. It helps to identify a trend reversal. The RSI indicator remains between 0 and 100, which you can change as per your requirement. Based on the latest readings of this indicator, the market direction is predicted.
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