BankNifty Trading Strategy using VWAP, AVWAP by a CA
Friends welcome to another video of Face2Face I am Vivek Bajaj and have been in the market for many years. Also, there's a saying that whatever happens, happens for good and I really believe this a lot. I recorded a Face2Face a few days back, in the recording there was a technical actually very minor problem but if there is a problem then it has to be solved. There was only one solution that we record again
and this time the recording should be absolutely awesome. So in this face2face, you’re going to be surprised again and by merging the three concepts- VWAP, Price Action, and Open Interest. By merging the three concepts we are also going to tell you the trading strategy we’ll teach you the concept, share the experience, motivate you, inspire you Goodness! So much is going to happen and it’s going to last a little longer than usual So if you are hungry take some food and drinks and sit down because this is going to take time. Keep taking pauses in between and keep making notes because this is going to be one of the best face2face in terms of knowledge which you will get You must have guessed with whom I recorded that face2face Let me welcome this face2face, Bijay Kumar Sharma. Hello sir, how are you?
All good. How are you? Thank you, sir, I am good too First and foremost from the full trading community side, thank you very much, you are sharing so much knowledge for us. means all the retailers and even the pros, we all are getting a lot of knowledge from you Now, basically a few days back I saw this, I saw it on Twitter that someone was traveling from Mumbai local and he was seeing your face2face. And someone must have said that your netflix is getting chased by your face2face. It feels great, there's a lot of knowledge gained, your StockEdge- the app also has a lot of knowledge in it. We extract datas from it on nights daily, FIIs data Really, kudos to you and what you're doing means it feels great that.. Thank you! Really I feel proud that we live in the same city.
Thank you so much Bijay, hmm Bijay is from Kolkata, he's a chartered accountant and a company secretary, yes he looks very simple but is very strong And friends like you, we are walking on the same path So when good friends are found, we don't get to know when the road passes by I have gotten so many good friends, this is almost my 140th face2face. We are so many friends and thus we are having so much fun on this journey. And the learner is also a friend. So first of all I want to thank everyone. You learners watch all this content where there is no entertainment. Where you serious learning is there and you watch till last so kudos to you. So it is very important to stay till last and watch because this is going to be a long one. Right ? Please stay till last. I will try my best. I will try my best to teach you as much as I have learned. Fantastic! There’s no compromise from my side, this is 100% commitment to you. Nice. So when I released the face2face with Bijay, I think there were approximately 25,000 30,000 views, after that I removed it.
So Bijay called me and said, has there been any mistake? Why did you remove it? Ha ha ha So i said that in the comments some people are saying that nothing is showing in the screen recording. So I requested him to give me one more time, to which he replied that sir i can’t give you other time, i will not give same time, i will give more time and I will talk more because i have got this chance twice so i will talk more. So let's go Bijay, last time also you told us about yourself but obviously, now we don't have that content. So about you and your journey, what shaped you? You have education, so obviously you had chosen a path but you have now entered the market and trading full time, so this is a very different path. I can resonate with that because when I entered the market after my education, my father was like what are you doing? Why did you study when you had to do this ? So I want to talk more about you first because you're a role model, you can be an inspiration for a few people who probably have taken the education path and who are resistant. Why should I trade? If I have an education then I should go into education, into the job path
So let's talk about you. How did it all start? First of all I am a very normal boy and absolutely normal like i was not very good in my studies also At least till 12th standard you can say that I was very normal. those buys who study behind the window, I was like that means behind the window, yes behind the window. I used to pass, used to be like tomorrow is an exam, studied today and got passed. I was of that kind.
Then family responsibility came, then I understood that either you can study or you have to struggle for 500 1000 2000 in life. Hmmm. At the same time I remember, I went to my maternal grandmother's house so my late grandfather said dear you have 4 years to struggle and study nicely. So you can have fun for the rest of your life and if you'll have fun for 4 years now then you have to struggle for the rest of your life.
So this is a very small word and those who are marwaris will understand what it basically means. So at that time in my relation Mr. Ashutosh Neotia was there, he held my hand and he bore all the expense for my CA, CA and CS whatever I became he financed it fully, he took care of me and I was groomed under him basically.
Those who know me, know that I like to be very down to earth If you don’t know me properly then no one knows about me in general. so I learned a lot from him There is no rule that if we have money, we will fly. You can sit quietly even if you've money. He just took one commitment from me, that Biju when you're working in the office, it’s okay and when you're studying then just study, office work is not that important.
But if you are not studying then you should be in the office, I should not get any complaint regarding that. So I performed this religion with 100% commitment. It used to be like if you remember, there used to be strikes in Calcutta very often.
So at that time I used to live in bada bazar Satyanarayan Park and my office was in Park Street. A few times this had also happened. I used to walk from Satyanarayan Park to Park Street. So it's okay, it's a journey. Got to learn everything and today I'm here So when my studies started, my mother sacrificed a lot. I have two sisters and both of them stopped studying because when resources are limited it can be invested only in a single place and they did everything, whatever is to be done for a brother to take him forward. You can say that everyone has one mother but I have three mothers My mother and my two sisters. So I can't even speak more, I will become emotional How many examples will I give, i mean if i start it now then maybe i will go on speaking about them, their struggles for 3 hours 4 hours Because, this chair where I am sitting today, 70-80% credit goes to my mother and two sisters and at the end of the day there is Bholenath, Hanuman ji. You know that we all believe in god.
Even today there is no one for me above my mother. No one is above her. And for me, there's nothing in front or behind. No matter what it is, there is nothing that's true The one with whom we move forward, we don't know that because of who we are moving forward, we don't know whose blessing is with us. At the end of the day we all are needy. Some are asking from god, some are asking from you, me or from somebody else.
So if we are in need of something, and if god has made us worthy of giving something to someone then we should definitely give it. The most important part- many youngsters must be watching this, please don't cheat your family. Wherever you are at the top, your parents, brothers or sisters have sacrificed a lot. And when you reach the top then sir, a lot of relationships will change but don't get it to that level Very right. I add one thing to it, that what is cheating has different definitions. Suppose you have X capital and from that, if you lose a certain amount then your family will have a problem but you lose X and above that you take loan and that becomes 5X and you are in EMI and you are in pressure, you're having suicidal thoughts. It's all cheating with the family.
Right, it's all cheating with the family Sir think, there's a son and if we talk about trading journey then just think if a 25 year old boy passes away then what will happen to the family. There can be no bigger cheating with his mother than that. So this is a completely out of thought process. Okay, mistake is done, leave the market. There's always a new life for every person Sir i can tell you that on 16th August, 1998 when i started my association with Mr. Neotia ji started at Rs 1000 per month and today6 i'm sitting here So it's a journey. You've to do everything slowly, you've to work hard also. At one point of time I was working 14-16 hours a day
even after becoming a CA I have never relaxed, I don't know what is that it is all because of becoming a CA, this degree is like that. People think we are CA so we will be working all the time we will think about this, let me tell you I was a very normal student, when I completed my CA I also enrolled for CS my mom said give both of them so at least you will land up with something and we will prosper God saw our struggle and my family's desperation so all our devotions, rituals, and hard work came into play and CA got cleared, also CS and life got set really motivational story. So if you are stuck somewhere in life you can watch this so this is our agenda to inspire and motivate you and in between we also share strategies before that, I want to talk about some important things, which I did that day so it is also important we do it today see people are trading these days, I will give you an example about everyone using a mobile these days there are 2 companies like jio and bhartiya, both of them have competition one is going forward and the other is going behind, but in the market, it is so big that it can't be my gain and your loss so think that the market is so big that whoever comes they all can prosper see the thing is that you have to learn, I get calls asking if this will go up or down, I should get a call or not no one wants to learn and this is a big problem in this community , I will tell you about this you can do online brokerage, they make your account and do online trading. What is the cost of all this
your capital is your cost you can use 50,000 to make it 0 or can do vice versa, if you have 5000 you can use 5 rupees for learning when I started I was a buyer I will tell you a short story there are lot of charitable trust in badabazar, even I am one of them it was gangasagar time even I was there, I saw that a south indian trader called Ramesh was teaching laxman rekha technique on twitter in 500 rupees everyone wants expiry, they like 10 from 1 this happened some 3 years back, 500 was fine that training changed my whole trading career from a buyer I became a seller basically share market is like a casino and there are buyers and sellers, this was said by him in that 2-hour webinar they are the player, now you have to decide whether you will become a buyer or a seller by god's grace, I do both buying and selling there has to be a pathway and that 500 rupee webinar changed my whole pathway everyone knows about subhadip nandy I have also learned from him, systematic trading I learnt from him I have had an association with him for the past 5 years and till now he has not told me like that it has never happened that I called him to ask if the price of this call will increase or decrease so you have to bring that sort of discipline and focus then only you can go ahead in life, another problem with this is that there are many trainers, nowadays people go to various trainers if they don't like them then they come and start abusing on Twitter, this is the latest trend when we were in school there were so many teachers, we used to study from 8-9 teachers in 4 hours it's not that we don't like a teacher we stopped studying science so at least try to learn, you will learn from 10 trainers, and 8 of them might be junk I try to learn as much as I can, doesn't matter if I will need that in the future or not so you don't know which one will teach you the best so you have to try so please concentrate on training, stop abusing people, and think about how you can move ahead in life if we make everyone smart then how will it work, we are smart people who give a certain amount of money to training I have taken much training and one thing is common that it teaches you something or the other may be the trainer's teaching style and not even the content so let it be we are smart enough to use our money for training, now if we will lose everything then who will lose those who want to lose their money in the market let them do it, we are there to earn see it is not like my gain is your loss, but people will teach in the market no matter how much we demonetize it through face2face series, we also have 300-500 rupees webinars on elearnmarkets.com, but even then they will abuse on Twitter, they are losers let them do it. So we will start with our lesson and dive deep into this content. I can see these drops and I want to dive into them so one is AVAMP, second is open interest and third is VWAP if anything is up then it is in the buyer's zone and if it is below then it is in the seller's zone in my intraday trading, 80-90% is my selling and 10-20% is my buying I mostly sell in bank nifty and in others, it is like that now I will say why I use bank nifty, people say that it is very volatile and hostile and we don't know where will it go if you see then the stocks are getting derived from nifty and it is like this in intraday trading now if we see these banks like hdfc, kotak, icici, sbi and axis if you track the movement of these 5 banks then you can track the whole bank nifty the thing about bank nifty is that 1000 options from above 1000 from below also otms they will get liquidity even in 39000 put so bank nifty is helpful and it will give you money, no other stock can give you like bank nifty in the last few days the whole Russia-Ukraine conflict is going on, I have stopped my onite actually, I will keep saying and it will continue, yes yes say To know when not to trade is very important in our life because you can't do everything on your own all the time. So sir the event which is going on currently, Russia and Ukraine, in this no data and no system will be able to tell you what Mr Putin will do at night. So sir at that time if you're carrying any overnight position then sir basically it's a gamble.
Because let's say today we buy put, suppose we buy put today and in the night it becomes peach then next day there will be a big gap Or consider that instead of buying puts you have sold the call, then you will land up in a problem. In last february’s expiry you must have seen blood all over the sheet because of that 2000 point downward move. So if somebody says boss bad luck, then I will say it rudely that it was not bad luck, basically, it was a bad trade. Boss here it was not your bad luck, you knew that there's a war going between Russia and Ukraine and nobody knows what they will do or not do At that time why do you need to trade? In the same way, sir when RBI policies come, okay what will RBI announce, alright? You see a lot of polls on the TVs how much will be the CRR, how much will be the Repo and many such other polls come. if you take a year's 365 days then it has 200 trading days te 20 days have events buyers have a calculation issue but with sellers, it is not like that here we will see these 3 pointers, one of them is what will be our view for the market tomorrow all this is really simple, vwap is known by a lot of people. But still, let us know sure there are particular things you have to see there are candles that you can draw we mark the high and low, one AV we get the high and from the other one we get the low if I think about my quarterly and monthly options then in one week we have 5 days in college, you think you need to become something so you struggle if everything is going well and you have a family then good or else you get an expiry all these are calls, otm 100, 200 all are otm calls if a person is selling bank nifty like that then they are sure that it will go more than 500 so there are some trading rules, if we are buying options then it needs to have vwap your chances of success are really high, here you are getting to trade so you have to check if the call is going down or not no one will give money for this and by the way, we are shooting this on Shivaratri see this is a bank nifty chart, this is a 55 week one if we click this candle then it has an open high low week whatever I see in these months, I draw them on this chart what I do is where I get a high volume I draw it from here so when it will try to run above we will get the bank nifty bullish imagine if market is here and suddenly it got big news so it opened for 10 minutes the call came down so it is not like that it is an out of way to do fun lately mostly everyone knows that I have many teachers I have done repeat courses see even in expiry it works brilliantly and we can enlarge this a little bit so in bank nifty, this has also happened in the future right? in put it will suddenly start dropping and then you will get big money in the market, after 2 pm you get a move of 700-800, that move is going constantly all day I will show you the bank nifty chart for 22nd February and the put os 37500 this is selling of the put, so the market is going fast see OI is increasing here, which means no trade is generating because OI is increasing. Price is increasing, OI is increasing which means selling is going on here.
The rule of price which we saw, in that what was there in the rule? It should be above VWAP and OI should fall. Here the OI is increasing Okay! Sir see here from 245 above VWAP and see OI Okay okay so you're saying that the seller of put is trapped so he is buying in bulk and OI is also decreasing because it is decreasing In last, which came on last thursday there was a fall of 700 800 points in Bank Nifty See this Rs 100 put was sold for Rs 500 Which software is this ? This is Amibroker sir but we can also see these data on Zerodha, etc. It's not like it depends upon software So the line of real time open interest shows everywhere ? Yes, it shows everywhere. This is your Open Interest, this is VWAP it is just a normal thing nothing extraordinary. This VWAP which you did this blue, this green one, this green one is it a normal VWAP ? Yes this is a normal VWAP. Is it not AVWAP ? No, this is absolutely normal VWAP.
Okay, sir if you see from here, this slanting if a being a trader you're here then see this Rs 100 put see here the price is Rs 100/Rs 70 It should be in your mind that why did fall started suddenly in this, here you see downward curve has started Its OI was almost 15 lakhs, downward started here, it crossed VWAP this trade which we call being a trader is a jackpot trade, it is a very simple trade. Tell me one thing, this OI data gives a delay of 3 minutes. Yes. it is 7100 it went down it is 36600 and it closed at almost 38000 we can get an idea of the uncertainty for that we will use Y data, and I am using this website called I charts we can take 500 for this and I selected the expiry 17th Feb this is the expiry, this is the call data and this is the put data and we have to see where is the big money in all this we can say that the OY is increasing and the call and put are also see the price is continuously going up, okay so the price is running, and also the OY here you have the OTM calls we will see the ITMs now someone was selling it, right? yes they are big people so they will do it its price is also high and it has gone up as you can see, 555 is high that doesn't matter to me because for me the OY is important it's not that I can sell it when it is in 473, I will have to see the OY the selling of the call that was going on has also stopped if I am taking a decision here then my stoploss will 490-500 this put is also telling me that the market will go up 37000 is the put here, the market is going as you can see the market is going down but it told me that it won't go down below 36500 God knows if you will be able to make money or not but it will be easy to stop your losses someone who has changed their stop loss they have a normal capital even now when you will check this then you will see the trade size and the trade position will differ I forgot to ask, how did you do the entry? so this was the case study now we will see how the bank nifty performed you don't worry about the time, you just tell me the concept so we will look at the weekly contract for this the put writing is increasing in this case overall this is put and the writing is going on this opened in the morning just how it happens and people take their positions because this is event-related I will ignore this and I will not expect that it will fall again selling 400-500 rupee put is not possible to sell in an event it is a compulsory payment so we think we will not trade and we will take anyone so from that, I can take a trade and it becomes a big movement it is a logical thing, if the market is not running up then that is a different thing till then friends, like, comment and share or do something this is the highest point, you can google this software I showed you a trade of 80000 call or put if the trade price is below then it will work like this, and what is it I will exit during day time I will not stay till the night on 9th, it has closed around this one, you got 100 points yes that vwap was from the past and they will discuss it from Wednesday and Thursday and it has panicked here as you can see that if we get the affiliation and in the local it is all so we take that trade this is the moving average and it tells me how to make a move in the market it is going from here to here and I will show you something else so when you will put the OY here I will tell you something else just like how you play with ITM it is the same it is the derivatives, we will copy the bhav copy from this so here we will see from the 3rd march we have done all this in CA, I told you from the beginning we will do it from the beginning now here we will do a small calculation you will have to see this in 2 steps then you will be able to you see any data and if the market is supposed to be bearish or bullish so downloading bhav copy on your own will only make it easy now that's nice so you have given commitment for face2face so this is good
2022-03-13 05:17
