Hey folks! I hope you are healthy and safe. Every week I’m sharing this weekly post with the analysis of the current data. Based on the data, we are trying to find Nifty and Bank nifty’s support and resistance for the coming week. I’m sharing one nifty and bank nifty weekly expiry strategy for the coming week with adjustments in this weekly post. So read this post till the end to know the strategy for the coming week.
In my mostly-weekly posts, I’m mainly focusing on risk management and sharing my thoughts and experience based on my own risk management rule. I’m sharing how risk management is essential and why you should focus on risk management if you are trading in this stock market. You can read my previous posts here: Replete Weekly Newsletter
When we are trading in this share market, our capital protection is more important than anything else. If you are not making money, that’s completely OK, but you should not lose your capital. Your trading capital is like your cycle wheels, and without your wheels, your cycle can’t go anywhere.
Risk management helps to take some safe bets, and it will help paddle your cycle every day. As you know, we get a profit when we run the same process again and again. We are doing the same activity every day. We are searching for traders and taking bets based on our analysis. Some trades can be profitable, but some trades go in loss.
Now, your priority is to monitor your loss-making bets. You don’t need to care about your profits, but you have to monitor your losses if you want to survive here for the long term. Your losses are the only thing that can destroy your confidence, your capital, and they can drag you into the emotional trap where you will take some unnecessary bets because of your fear and great.
In the morning I was reading a quote from Steve Burns. He says:
The fastest way to loose your whole trading account is to try to quickly double it.
He is an experienced trader, and he knows how we treat the share market. We think that we can double or triple our capital in just one week or one month. One day, One person called me and said that I have 20k and want to make 40K every month. Can I do that?
Then I told him that the Share market is like a serious business. Like every business needs proper research, knowledge, training, and initial capital. The same applies here too. You can archive your goal, but first, you have to try to archive some reasonable returns. Don’t expect anything unrealistic.
That’s why I always advise risk management, especially in your initial days. It would help if you focused on how not to lose big instead of how to make it big. Try to earn 1% consistently first, and then only you can approach 10%. That’s the reason I always advocate for option hedging strategies if you don’t have that much knowledge and experience in the share market.
These option hedging strategies are not only helping to generate some decent (4% – 5%) return but helping to manage your risk too. These strategies are straightforward to learn and implement. Even a non-technical office-going guy can learn and implement these strategies.
If you want to learn and trade with these strategies can check our Mentorship program. I’ll always be there to provide you with all the handhold support until you successfully start implementing these strategies. Check details on the below link:
- 1 Nifty Weekly analysis with weekly expiry strategy
- 2 Bank Nifty Weekly analysis with weekly expiry strategy
- 3 Options Strategies – A Mentorship Program
- 4 The best strategy for Bank Nifty Future Intraday
Nifty Weekly analysis with weekly expiry strategy
After open gap-down on Monday Nifty made a low of 16809.65. Later on Tuesday, we saw a sharp recovery that manages to close in the range of 17000 – 17500. This range is acting as the weekly range until we are not getting any breakout or breakdown from the range.
The overall trend is Neutral, and there is no clear sign of directional movement. Hgh IV (Implied Volatility) is giving a good opportunity to trade with range-bound strategies.
Now 16800 – 17000 is acting as an immediate support zone for the coming week, and a breakdown will lead to the next levels at 16500 & 16000. A breakdown from 16800 will generate a sell signal. So no short trade until Nifty is holding 16800. And a short trade if Nifty manage to sustain below 16800.
On Upside, A breakout from 18300 will generate a long trade for the next target of 19000. Trade accordingly.
One more thing you have to keep in mind here is that Next week is Monthly Expiry, and volatility can be high. So trade with limited risk strategies only and avoid any directional trade.
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Nifty weekly market update based on option chain data
Based on option chain data, the highest Open interest stands at 18000 CE & 17000 PE, followed by 17500 CE & 16500 PE. PCR of all strikes is 0.97, which indicates a neutral market. PCR at 17000 stands at 5.56, which is acting as an immediate support level.
The Put-call ratio at 17500 stands at 0.29, which is acting as a resistance level. Equally, an important indicator, i.e., Option Pain, is at 17300, indicating weekly expiry at 17300. A shift in option pain will provide further levels.
On both sides, significant open interest buildup indicates that nifty is facing support from both sides and expecting range-bound activity with a bullish trend in the coming week. Based on Option chain data, 17000 & 16800 are the support levels & 17500 & 18000 are the resistance levels for this expiry.
Keep tracking open interest to analyze market participants’ 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 17000 & 17700 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 17000, then square off call spread and bring it down to 500 points lower levels.
The same thing you can do with put spread means if you got a breakout from 17700. You can shift your put spread to 500 points up.
If you want to learn these strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(75% OFF expiring very soon).
Bank Nifty Weekly analysis with weekly expiry strategy
Despite high volatility, BankNifty is trading in a range of 39400 – 36400. Breakout or breakdown from this 3000 points range will decide the further directional movement.
The overall trend is Neutral, and there is no clear sign of any trend. So we can expect some range-bound activity in the coming week.
Now 36400 is acting as an immediate support level for the coming week, and a breakdown will lead to the next levels at 35000 & 34000. A breakdown from 36400 will convert the short-term trends into bearish. So no short trade until BankNifty is holding 36400.
On Upside, A breakout from 39400 will lead to the next target of 40500. Trade accordingly.
Bank Nifty weekly market update based on option chain data
Based on option chain data, the highest Open interest stands at 38000 CE & 37500 PE, followed by 39000 CE & 37000 PE. PCR of all strikes is 0.91, which indicates a neutral market. PCR at 37000 stands at 5.72, which is acting as an immediate support level.
The Put-call ratio at 38000 stands at 0.31, which is acting as a resistance level. An equally important indicator Option Pain is at 37600, indicating weekly expiry at 37600. A shift in option pain will provide further expiry 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: Broken Wing butterfly
For this strategy, follow a stop loss of 36800 and 38650. means square off this strategy if you see a breakdown from 36800 or breakout from 38650.
If you find that BankNifty is giving a breakdown and sustaining below 36800, 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 38650. You can shift your put spread to 1000 points up.
If you want to learn these Weekly expiry options strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(75% OFF).
Much Check this also– Performance of the Option strategies, Nifty & BankNifty Weekly Analysis with Option strategy, Nifty Option Strategy for Budget Session, A low-risk options strategy in LICHSGFIN, An iron condor options strategy in ICICIBANK, Reverse Jade Lizard options strategy in UPL, A high probability options strategy in YESBANK
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*( Please avoid any questions like which Call or Put we should buy in the coming week).
Options Strategies – A Mentorship Program
On September 01, 2019, We have launched a new mentorship program for Option strategies, in which we’ll discuss how can we deploy these Options strategies? What rules we should follow before taking a trade? And what should be our adjustments if the script is moving against your direction?
The best strategy for Bank Nifty Future Intraday
If you’re looking for Best Intraday Strategy that will work out well for you no matter which market condition we are in, then this strategy is perfect for you. It has been backtested in all kinds of conditions and has shown great potential.
DISCLAIMER: – we are not a SEBI research analyst. Weekly market update, Views or options 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 to interpreting specified analysis methods. This information should only be used by investors and traders who are aware of the risk inherent in securities trading.