BankNifty Levels for Tomorrow Monday, Feb 13, 2023

BankNifty technical analysis and levels for next day are updated everyday after the market closes. You can use the levels for learning and backtesting purposes. These levels are based on support & resistance can be used to exit & take an entry. Major support & resistance levels are reversal levels where the market may turnaround, hence can be used for entry & exit for paper trading as well.

Summary

BankNifty is currently trading in very tight range of 400 points for last few days i.e. 41,300-41,700. This is good time for Option Sellers taking safe and decent profit intraday as market is not giving huge moves. If we see Volatility Index, VIX is staying lower @ 12.75 only after touching 19.39 levels on Jan 30,2023.

What does VIX of 16 mean in Indian Markets?

To convert the VIX to a daily volatility number, simply divide by 16%. For example, a VIX of 12% divided by 16% = 0.75%. This means that the VIX is “pricing” about 0.75% daily volatility. A VIX of 16 would imply 1% daily volatility. This is roughly true because “vol” is proportional to the square root of time and 16 is the approximate square root of the number of trading days in a year. This is important because option market makers have to price and hedge Nifty options on an hourly, daily, and weekly basis in a very competitive business environment. The VIX therefore reflects not only institutional expectations about volatility and risk over the next 1-4 weeks, but also the market makers’ daily business risk-and-reward estimates.

As per VIX, we expect tight range on BankNifty with lesser chances of Gap Up OR Gap Down Opening on Monday. We are slightly bullish on banknifty and see following important levels for Monday  Feb, 13, 2023