--- title: "The Banks Bought Themselves Back, BANKEX | The Tanmay Edge" description: "On Thursday the closing auction knocked 1,094 points off the BANKEX and marked IndusInd Bank at 970 while the same share traded at 1,002.90 on the other" source_url: "https://www.rupeecase.com/podcast/episodes/2026-08-31" --- The Tanmay Edge, Season 2, EP114 # The banks bought themselves back BANKEX recovers 650 of 1,094 points, Puts +311 lakh, calls -36 lakh, PCR turns for the first time in four sessions BANKEX took back 650 of the 1,094 points the Thursday auction removed * **8:45**listen * **3.5/5**graded at settlement * **Mon 31 Aug 2026**aired, Season 2 Now playing The banks bought themselves back EP114, 31 Aug, 8:45 1x 0:00Chapter marks are estimated from the notes8:45 The host did not serve the audio here. Listen on [Apple Podcasts](https://podcasts.apple.com/us/podcast/the-tanmay-edge-indias-pre-market-edge-5-minutes/id1824088016) or [Spotify](https://open.spotify.com/show/0F755kaD5hggGDjy26Sz33). 01Scorecard ## 3.5/5 at settlement. **3.5/5**70% **The call.** BANKEX took back 650 of the 1,094 points the Thursday auction removed The recovery came with no news at any of the marked down banks Nifty closed 24,175, up 85 points, low 24,076 and high 24,188 Sensex closed 331 points up, VIX fell 4 percent to 10.66 IT rose 3.51 percent with ten of ten constituents advancing The Nifty rose 35 basis points, so IT was nearly the entire index move Nifty 500 was 225 up against 271 down while the index closed green Put open interest added 3.11 crore while call open interest fell 36 lakh 44.4 lakh added onto 24,100, the biggest single add on the board 24,000 reached 1.02 crore, the biggest position anywhere PCR rose from * **2**Hit * **2**Partial * **0**Mechanical * **1**Miss Graded against the 1 Sep 2026 session; on the public trail from 2 Sep 2026. The grader's noteGraded Tue 01 Sep against the Mon close 24,090. The 24,000 support was the right level and it held on a closing basis, so the buy zone call was correct in substance. But it broke intraday to 23,993 and the day never got back to the 24,200 magnet the board was said to want, so the pin half of the call did not arrive. The one SD band framed the session properly and the spreads only discipline held through an expiry eve with an MSCI rebalance. Three and a half out of five. [The whole season, graded](/podcast/#trail)[August 2026 archive](/podcast/2026-08/)[Methodology](/track-record) 02In this episode ## 7 chapters, the numbers pulled out. 1. **07**The plan: buy the zone into an expiry withThe gap down opens near 24,090 to 24,120, right back at Thursday's close, and 24,000 to 24,100 is the 2. **07**The plan: buy the zone into an expiry withThe gap down opens near 24,090 to 24,120, right back at Thursday's close, and 24,000 to 24,100 is the 3. **07**The plan: buy the zone into an expiry withThe gap down opens near 24,090 to 24,120, right back at Thursday's close, and 24,000 to 24,100 is the 4. **07**The plan: buy the zone into an expiry withThe gap down opens near 24,090 to 24,120, right back at Thursday's close, and 24,000 to 24,100 is the 5. **07**The plan: buy the zone into an expiry withThe gap down opens near 24,090 to 24,120, right back at Thursday's close, and 24,000 to 24,100 is the 6. **07**The plan: buy the zone into an expiry withThe gap down opens near 24,090 to 24,120, right back at Thursday's close, and 24,000 to 24,100 is the 7. **07**The plan: buy the zone into an expiry withThe gap down opens near 24,090 to 24,120, right back at Thursday's close, and 24,000 to 24,100 is the Cold open: the banks bought themselves back **1,094**Closing auction took Today the banks bought themselves back. And we have Nifty expiry tomorrow, along with an MSCI rebalance that is going to happen in the CAS closing session, so an extremely volatile day is what we are looking into. This is the cleanest proof you will get that Read the chapter Friday's tape: one sector did all the work **24,175**Nifty closed **85 points**Nifty closed **24,076**Percent, with low **331 points**Sensex closed The Nifty closed at 24,175, up 85 points, up 0.35 percent, with a low of 24,076 and a high of 24,188. The Sensex closed 331 points up, 0.43 percent. Volume almost 3,000 lakh, value 21,000 crore. The VIX fell to 10.66, down 4 percent, back under the 11 level Read the chapter The warning: the index rose and the average stock fell The Nifty 50 was 30 up against 19 down in the print. The Nifty 500 was 225 up against 271 down. The total market was 350 up against 396 down. The index rose and the average stock fell. Do not mistake an IT rally for a broad based market. On yesterday's call I will take a four on five. The tape, not the close, rule worked. 24,000 held as the support and 24,300 was never threatened. Read the chapter The board inverted: puts written against calls coming off **3.11**Open interest was added **36 lakh**Interest was reduced **14 lakh**Lakh onto and another **24,200**Another lakh Now the options board, and this is a complete reversal. For three straight sessions calls were being written at three to three and a half times the pace of the puts. On Friday that inverted, and badly. Put open interest was added 3.11 crore while call open Read the chapter The map: the one SD band brackets the magnet **24,050**Expiry gives range **24,300**Gives range **24,066**Lower edge **24,076**Friday's low One standard deviation into tomorrow's expiry gives a range of 24,050 to 24,300. Look where those edges stand. The lower edge, 24,066, sits exactly on Friday's low of 24,076. The upper edge, 24,285, sits just under 24,300. The band brackets the magnet, and the Read the chapter Two big flips: the pros turn again, the crowd reduces both legs **1,62,000**Pros bought back **35,000**Foreigners covered **4,800**Call shorts but added **2 lakh**Crowd finally sold almost There are two big flips. The pros bought back 1,62,000 calls and went from net short calls to net long in a single session, their second call flip in a week, so read that desk as trading the range and not carrying a view. The foreigners covered 35,000 call Read the chapter The plan: buy the zone into an expiry with MSCI **24,090**Gap down opens **24,000**Thursday's close **24,100**Thursday's close **2.2**Support on the board The gap down opens near 24,090 to 24,120, right back at Thursday's close, and 24,000 to 24,100 is the strongest support on the board, 2.2 crore across those two strikes, with Friday's low at 24,076. That is your zone to buy. Max pain stands at 24,200, just Read the chapter 03The notes ## Chapter by chapter. ### *01*Cold open: the banks bought themselves back Today the banks bought themselves back. And we have Nifty expiry tomorrow, along with an MSCI rebalance that is going to happen in the CAS closing session, so an extremely volatile day is what we are looking into. This is the cleanest proof you will get that Thursday's marks were mechanical and that the CAS session is what is bringing in the volatility. On Thursday the closing auction took 1,094 points off the BANKEX and marked IndusInd, Federal, PNB and Canara down two to four percent on prints the tape never made. On Friday the BANKEX took back 650 of those points, sixty percent of it, in a single session, and it did that with no news at any of those banks. ### *02*Friday's tape: one sector did all the work The Nifty closed at 24,175, up 85 points, up 0.35 percent, with a low of 24,076 and a high of 24,188. The Sensex closed 331 points up, 0.43 percent. Volume almost 3,000 lakh, value 21,000 crore. The VIX fell to 10.66, down 4 percent, back under the 11 level after three straight sessions of rising. But you need to know what actually did the work, because it was one sector. IT rose 3.51 percent with ten of its ten constituents advancing, a perfect breadth print inside the sector. TCS 4 percent, Infosys 3.5, LTIMindtree 3 percent. All the IT names carried it through. And the Nifty rose 35 basis points, so IT was very nearly the entire index move and everything else was the noise around it. ### *03*The warning: the index rose and the average stock fell The Nifty 50 was 30 up against 19 down in the print. The Nifty 500 was 225 up against 271 down. The total market was 350 up against 396 down. The index rose and the average stock fell. Do not mistake an IT rally for a broad based market. On yesterday's call I will take a four on five. The tape, not the close, rule worked. 24,000 held as the support and 24,300 was never threatened. ### *04*The board inverted: puts written against calls coming off Now the options board, and this is a complete reversal. For three straight sessions calls were being written at three to three and a half times the pace of the puts. On Friday that inverted, and badly. Put open interest was added 3.11 crore while call open interest was reduced by 36 lakh. And look at where. 44.4 lakh onto 24,100, taking it to almost the biggest single add on the board. 31.6 lakh onto 24,000, taking it to 1.02 crore, which is now the biggest position anywhere on the board. 23 lakh onto 23,900, and another 14 lakh onto 24,200. On the call side, 24,400 and 24,200, everything came off. The PCR went from 0.59 to almost 0.776, its first rise in four sessions. Max pain held at 24,200 while the spot closed at 24,175, just 24 points below the magnet on expiry eve with an MSCI rebalance. And the gamma gate moved down to the 24,250 to 24,300 level, so the flip is closer than it was. To read it simply: the writers spent three days selling the upside and one day buying the downside. ### *05*The map: the one SD band brackets the magnet One standard deviation into tomorrow's expiry gives a range of 24,050 to 24,300. Look where those edges stand. The lower edge, 24,066, sits exactly on Friday's low of 24,076. The upper edge, 24,285, sits just under 24,300. The band brackets the magnet, and the board wants 24,200. The straddle implied range is wider, around 23,950 on the lower end to 24,400 on the upper end, or exactly 23,967 to 24,384. And the futures ladder: tomorrow's contract at plus 70 basis, next week 107 points, and September at plus 188. ### *06*Two big flips: the pros turn again, the crowd reduces both legs There are two big flips. The pros bought back 1,62,000 calls and went from net short calls to net long in a single session, their second call flip in a week, so read that desk as trading the range and not carrying a view. The foreigners covered 35,000 call shorts but added 4,800 more futures short taking that book to about two lakh, and they sold cash in size. They are the one participant who did not turn. And the crowd finally sold almost 2 lakh calls, the biggest single day sale of the entire run, and covered almost 36,000 naked puts, the first reduction in four sessions on both the call and the put side. That book is down from 7.61 lakh to 7.25 lakh, so for now the crowd has reduced risk on both legs. And this is the cleanest absorption print of the month: the foreigners sold 5,040 crore of cash, the largest single day sale of the month, and the domestics bought 5,184 crore and absorbed it, almost rupee for rupee. Cumulatively the foreigners are now down just 454 crore for the month, a month of buying wiped out in one session, against 54,000 crore from the locals. ### *07*The plan: buy the zone into an expiry with MSCI The gap down opens near 24,090 to 24,120, right back at Thursday's close, and 24,000 to 24,100 is the strongest support on the board, 2.2 crore across those two strikes, with Friday's low at 24,076. That is your zone to buy. Max pain stands at 24,200, just above the spot into tomorrow's expiry, and the board wants it, the option chain wants it. The gamma flip level is 24,250 to 24,300, and above it the day compresses. 24,300 is the resistance with 1.3 crore calls written over there. The range for the day is 24,066 to 24,285. Risk case, Asia's weakness carries through and 24,000 breaks, and below it the crowd is still short 7.2 lakh puts. Riders: oil back above 90, gold broken, yields at 6.91, and foreigners selling in cash. Expiry tomorrow with an MSCI rebalance, so spreads only, volatility expected to rise, never naked shorting. And remember the breadth, one sector carried Friday, so we have to look at the broader market today. 04Key takeaways ## 24 things to carry into the session. * *01*BANKEX took back 650 of the 1,094 points the Thursday auction removed * *02*The recovery came with no news at any of the marked-down banks * *03*Nifty closed 24,175, up 85 points, low 24,076 and high 24,188 * *04*Sensex closed 331 points up, VIX fell 4 percent to 10.66 * *05*IT rose 3.51 percent with ten of ten constituents advancing * *06*The Nifty rose 35 basis points, so IT was nearly the entire index move * *07*Nifty 500 was 225 up against 271 down while the index closed green * *08*Put open interest added 3.11 crore while call open interest fell 36 lakh * *09*44.4 lakh added onto 24,100, the biggest single add on the board * *10*24,000 reached 1.02 crore, the biggest position anywhere * *11*PCR rose from 0.59 to 0.776, its first rise in four sessions * *12*Max pain held 24,200 with spot 24 points below on expiry eve * *13*Gamma gate moved down to the 24,250 to 24,300 level * *14*One SD 24,066 to 24,285, bracketing the magnet * *15*Lower edge 24,066 sits exactly on Friday's low of 24,076 * *16*Pros bought back 1,62,000 calls and flipped from net short to net long * *17*Second proprietary call flip inside a single week * *18*FIIs covered 35,000 call shorts but added 4,800 more futures short * *19*Crowd sold almost 2 lakh calls, the biggest single day sale of the run * *20*Crowd covered 36,000 naked puts, book down from 7.61 to 7.25 lakh * *21*FIIs sold 5,040 crore of cash, the largest single day sale of the month * *22*DIIs bought 5,184 crore and absorbed it almost rupee for rupee * *23*Foreign cumulative for the month down to just 454 crore * *24*Plan on record: buy zone 24,000 to 24,100, range 24,066 to 24,285, spreads only Show all 24 05In his words Today the banks bought themselves back. This is the cleanest proof you will get that the Thursday marks were mechanical. The index rose and the average stock fell. 06Transcript ## The full episode, in text. Read the transcript Reading mode Copy link 1,070 words, about 5 min to read A very good morning, guys. So today, the banks bought themselves back. And we have Nifty expiry tomorrow, along with an MSCI rebalance that is going to happen in the CAS closing session, so an extremely volatile day is what we are looking into. This is the cleanest proof you will get that the Thursday marks were mechanical and that the CAS session is what is bringing in the volatility. This is The Tanmay Edge. You are listening to episode 114. I am Tanmay Kurtkoti. Let's go. So let's look at what happened on Friday. 35 percent, with a low of 24,076 and a high of 24,188. 43 percent. Volume almost 3,000 lakh, value 21,000 crore. 66, down 4 percent, back under that 11 level after three straight sessions of rising. But you need to know what actually did the work, because it was one sector. 51 percent with ten of its ten constituents advancing, a perfect breadth print inside the sector. 5, LTIMindtree 3 percent. All the IT names carried it through. And the Nifty rose 35 basis points, so IT was very nearly the entire index move and everything else was the noise around it. Which brings me to the warning. The Nifty 50 was 30 up against 19 down in the print. The Nifty 500 was 225 up against 271 down. The total market was 350 up against 396 down. The index rose and the average stock fell. Do not mistake an IT rally for a broad based market. On yesterday's call, I will take a four on five. The tape, not the close, rule worked. 24,000 held as the support and 24,300 was never threatened. com. Now the options board, and this is a complete reversal. For three straight sessions calls were being written at three to three and a half times the pace of the puts. On Friday that inverted, and badly. 11 crore while call open interest was reduced by 36 lakh. And look at where. 4 lakh onto 24,100, taking it to almost the biggest single add on the board. 02 crore, which is now the biggest position anywhere on the board. 23 lakh onto 23,900, and another 14 lakh onto 24,200. So what happened on the call side? The call side, 24,400, 24,200, everything came off. 776, its first rise in four sessions. Max pain held at 24,200, while the spot closed at 24,175, just 24 points below the magnet on expiry eve with an MSCI rebalance. And that gamma gate moved down to the 24,250 to 24,300 level, so the flip is closer than it was. To read it simply: the writers spent three days selling the upside and one day buying the downside. The math is simple. One standard deviation into tomorrow's expiry gives me a range of 24,050 to 24,300. Look where those edges stand. The lower edge, 24,066, sits exactly on Friday's low of 24,076. The upper edge, 24,285, sits just under 24,300. The band brackets the magnet. The board wants 24,200. The straddle implied range is wider, around 23,950 on the lower end to 24,400 on the upper end, or exactly 23,967 to 24,384. And the futures ladder, tomorrow's contract at plus 70 basis, next week 107 points, and September at plus 188. So who did what, and there are two big flips. The pros bought back 1,62,000 calls and went from net short calls to net long in a single session. That is their second call flip in a week, so read that desk as trading the range and not carrying a view. The foreigners covered 35,000 call shorts, but they added 4,800 more futures short taking that book to about two lakh, and they sold cash in size. They are the one participant who did not turn. And the crowd finally sold almost 2 lakh calls, the biggest single day sale of the entire run, and covered almost 36,000 naked puts. The first reduction in four sessions on both the call and the put side. 25 lakh on the put side, so for now the crowd has reduced risk on both legs. The flows, and this is the cleanest absorption print of the month. The foreigners sold 5,040 crore of cash, the largest single day sale of the month. The domestics bought 5,184 crore and absorbed it, almost rupee for rupee. Cumulatively the foreigners are now down just 454 crore for the month, a month of buying wiped out in one single session, against 54,000 crore from the locals. In derivatives they sold 780 crore of index futures and bought 300 crore of index options. The combined read is bearish, high confidence. And one thing this morning, I am looking at the macro again. 58, up 2 percent, a full round trip in three sessions. Gold has broken to 4,405, down another percent, roughly 250 dollars off in three sessions, and its trend rating has gone from bullish to neutral. 49, Hong Kong also down. 52, while Europe was green on Friday. 91 and rising. 37 percent. So the honest read is an open around 24,100 to 24,120 levels, a gap down of 60 to 80 points, straight back to Thursday's close. And our book is rebalancing today, so keep a watch on that. So the plan. 2 crore across those two strikes, with Friday's low at 24,076. That is your zone to buy. Max pain stands at 24,200, just above the spot into tomorrow's expiry, and the board wants it, the option chain wants it. The gamma flip level is the 24,250 to 24,300 level. Above it the day compresses. 3 crore calls written over there. The range for the day is 24,066 to 24,285. Risk case, Asia's weakness carries through and 24,000 breaks. 2 lakh puts, so that is something to watch for. 91, and foreigners selling in cash. Expiry tomorrow with an MSCI rebalance, so spreads only, volatility expected to rise, never naked shorting. And remember the breadth, one sector carried Friday, so we have to look at the broader market today. So have a great Monday, guys. The banks bought themselves back, and the auction that took the points away gave them back. This was The Tanmay Edge. If you found value in this, share it with one trader friend who needs it right now. com. See you all once again tomorrow. Until then, have a happy Monday and safe trading. Questions ## EP114, in plain words. What does EP114 of The Tanmay Edge cover?EP114, Monday 31 Aug 2026, 8:45, in 7 chapters: Cold open: the banks bought themselves back; Friday's tape: one sector did all the work; The warning: the index rose and the average stock fell; The board inverted: puts written against calls coming off; The map: the one SD band brackets the magnet; Two big flips: the pros turn again, the crowd reduces both legs; The plan: buy the zone into an expiry with MSCI. How did the calls in EP114 score?Grade 3.5/5 (70 percent): 2 hit, 2 partial, 0 mechanical, 1 miss. Graded against the 1 Sep 2026 session. Is The Tanmay Edge investment advice?No. It is market commentary for education only, not a recommendation to buy or sell any security. RupeeCase is not a SEBI registered investment adviser, and strategy figures on RupeeCase are model, back tested. Explore next ## Learn what the episode covers. * [Free module 7.4INR, FII Flows, and Global Market Linkages10 min read](/learn/path-7/module-7-4-inr-fii-flows-global-linkages) * [Free module 1.3Indices & Benchmarks13 min read](/learn/path-1/module-1-3-indices-and-benchmarks) * [Free module 3.1The Momentum Factor11 min read](/learn/path-3/module-3-1-momentum-factor-deep-dive) Community ## Join my WhatsApp group. Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera 07Read next ## Behind the calls. [Learn, module 2.3Risk Metrics That MatterEvery strategy shows you a CAGR. Fewer show you the drawdown. Almost none explain what the Sharpe ratio actually means.Intermediate, 8 min](/learn/path-2/module-2-3-risk-metrics-that-matter)[Learn, module 6.6Derivatives: Futures and Options for the Systematic InvestorThe F&O market in India is one of the largest derivatives markets in the world by volume. Most retail participants loseIntermediate, 8 min](/learn/path-6/module-6-6-derivatives-futures-options) [StrategyNifty 50 Equal WeightAll 50 Nifty names, equal weight. The simplest card on the lineup.Model, back tested CAGR 16.4%, as of 27 Apr 2026. Risk Moderate.](/strategies/nifty-50-equal-weight) Share [X](https://x.com/intent/tweet?text=The%20banks%20bought%20themselves%20back%20%7C%20The%20Tanmay%20Edge%20EP114&url=https%3A%2F%2Fwww.rupeecase.com%2Fpodcast%2Fepisodes%2F2026-08-31) [LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.rupeecase.com%2Fpodcast%2Fepisodes%2F2026-08-31) Copy link [All episodes](/podcast/) Market commentary for education only. Not investment advice, not a recommendation to buy or sell any security. RupeeCase is not a SEBI registered investment adviser. Strategy figures are model, back tested.