Hello guys. I hope you all are doing good. In this Weekly Newsletter, I’m sharing a market trend based on my analysis and reading. In this post, I’m sharing Nifty and bank nifty weekly expiry strategy too. So read this post till the end to know which method I’m using to generate my weekly return and what should be the adjustments if anything goes wrong.
I will share how I’m calculating a range and based on that range which option strategy I’m selecting for the coming week. I’m getting good feedback for this weekly newsletter which is encouraging me to do something better for you.
In this weekly analysis post, I’m trying to share whatever I have learned in my 9+ years of a trading career. I hope my experience is helping you to make some better decisions.
In the last few weeks, we saw very high volatility. High volatility is bringing some good opportunities to make good returns but brings high risk too. So focus more and more on Risk Management right now.
When volatility is high, that means you will get good credit, and it helps to create some high probability non-directional strategy in the market to generate some consistent return. But Your risk must be limited. Otherwise, it will hurt you very badly.
You can see that 70% of the time market consolidates in a range. So If we are creating a non-directional strategy, the Chances to make money are higher than a directional strategy. Because 70% accuracy the market itself giving to us.
That’s the main reason I prefer some non-directional strategies most of the time instead of Directional strategies. Now let us look at the chart and option chain data for the coming week to deploy the Nifty and Bank Nifty weekly expiry strategy.
- 1 Weekly analysis with Nifty weekly expiry strategy
- 2 Weekly analysis with Bank Nifty Weekly Expiry strategy
- 3 Highly Rated Best Intraday strategy for Bank Nifty Future
- 4 Options Strategies – A Mentorship Program
Weekly analysis with Nifty weekly expiry strategy
In the last weekly analysis post, I shared that 15852 – 16377 is acting as the reversal zone and if Nifty manages to sustain above this zone, we may see some recovery in the market.
Nifty took support from the reversal zone and saw a good rally that helped Nifty to close above 17550 which is a very good resistance level. Now, what should be the next plan?
Now as you can see that Nifty has given a very good upside movement and closed above 17550, that’s a good sign for the Bulls. Only a small hurdle is at 1800 – 18100. A Successful breakout will open new doors on the upside.
One can place a long trade here with a stop-loss below 16900 for a short-term target of 18100 & 18500.
The overall trend changed from Neutral to UP but because we are limited risk traders we still prefer non-directional strategies. Check our limited-risk strategy below:
Nifty Option Chain analysis
Based on option chain data, the highest Open interest stands at 18000 CE & 16500 PE, followed by 17600 CE & 17500 PE. PCR of all strikes is 1.18, which indicates a neutral market. PCR at 17400 stands at 3.25, which is acting as an immediate support level.
The Put-call ratio at 18000 stands at 0.09, which is acting as a resistance level. Equally, the important indicator “Option Pain” is at 17500, indicating weekly expiry at 17500. A shift in option pain will provide further levels.
Significant open interest buildup on the PUT sides indicates that Nifty is facing good support from lower levels. Based on Option chain data, 18500 and 18000 are acting as good support levels. On the other hand 17400, and 17000 are acting as good resistance levels for this expiry.
Keep tracking open interest to analyze market participant’s behavior. If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.
Nifty Weekly Expiry Strategy: Iron Condor
Initially, you can keep a stop loss of 17350 & 18000 for this strategy. Means square off if you find nifty is giving a breakout or breakdown. Or you can do this adjustment too.
If you find that Nifty is giving a breakdown and sustaining below 17350, then square off the call spread and bring it down to 400 points lower levels.
The same thing you can do with put spread means if you got a breakout from 18000. You can shift your put spread to 400 points up.
Weekly analysis with Bank Nifty Weekly Expiry strategy
In the last banknifty weekly options strategy post, I shared that the overall trend is still DOWN and any upside should be treated as a sell-on rising opportunity until the banknifty is not closing above 35500. But after a range-bound activity this week, BankNifty manage to break its important resistance level i.e. 36700 and closes at 37148.50 which is a good sign for Bulls.
Now, Before you make any trading decision, Two things you need to keep in mind here:
- The trend looks positive if BankNifty manages to hold 36700 for the next 3-4 trading sessions.
- 36100 – 35700 is acting as a strong support zone here.
A breakout from 36700 is generating a new long signal for the next targets of 37900 & 38800 for the short term. A short trade is only advisable if Bank Nifty is sustaining below 34900. Till then trade with range-bound strategies only.
Personally, I believe that Banknifty should respect the 36700 level, and we may see some more upside from here. But as we both know that the market is supreme, we should always keep ourselves ready for unexpected moves. So trade with a proper hedge only, especially if you are holding an overnight position.
Bank Nifty option chain analysis
Based on option chain data, the highest Open interest stands at 37000 CE & 35000 PE, followed by 38000 CE & 36500 PE. PCR of all strikes is 1.26, which indicates an overbought market. PCR at 36000 stands at 7.76, which is acting as an immediate support level.
The Put-call ratio at 38000 stands at 0.04, which is acting as a resistance level. Equally, the important indicator Option Pain is at 36700, indicating weekly expiry at 36700. A shift in option pain will provide further levels.
If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty Weekly expiry Strategy: Iron Condor
Initially, for this bank nifty weekly expiry strategy, you can keep a stop loss of 3000₹ or (36300 & 37900) range for this strategy. Means square off if you find bank nifty is giving a breakout or breakdown from that range. Or you can do this adjustment too.
If you find that bank nifty is giving a breakdown and sustaining below 36300, then square off call spread and bring it down to 1000 points lower levels.
The same thing you can do with put spread means if you got a breakout from 37900. You can shift your put spread to 1000 points up.
Much Check this also-
- Why is psychology important in option trading?
- 3 Simple Options Strategies for High Volatility
- Non-Directional Option Strategy: The Best Trading Strategy for Volatility
Post your comments in the comment box if you have a query related to the Bank Nifty Weekly expiry strategy. You can ask any question related to options trading in the comment box.
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DISCLAIMER: – we are not SEBI research analysts. Views and strategies are posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline for interpreting specified analysis methods. This information should only be used by investors and traders who are aware of the risk inherent in securities trading.