I have been experimenting with pairs trading for quite some time now. I can see there is island gap reversal in kotakbank/Hdfcbank ratio chart. I don't know whether it is going to work but it will be interesting to see how it unfolds from here.
The trade you are supposed to take is Short Hdfc Bank Futures & Long Kotak Bank Futures.
The trade you are supposed to take is Short Hdfc Bank Futures & Long Kotak Bank Futures.