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Hello friends. I hope you are doing good. Every week in my weekly analysis and options strategies post, I’m taking one common problem and trying to provide you the possible solution to deal with that problem.
As a beginner, there are lots of things we have to figure out before we jump into the live trading with real money. Every day we are facing so many questions and sometimes it seems very difficult to find the solution to that problem.
I have started this blog 4 years back with a commitment that I will help all my fellow traders in every possible way from my experience and the knowledge I have gained till now from this market.
There are many topics I have covered in my previous weekly posts and I know there are lots of the problems still out there. Many traders are dealing with them every day.
Today I’m not sharing my thought, in fact, I’m asking you that what is the biggest problem you are facing right now? Share it with me and I promise I will cover it in my coming articles to help in every possible way.
So click on the below button and share your biggest problem who’s the answer you are expecting from me. I will record all the queries and will try to provide the best solution based on my personal experiences.
* The Above form is just for the question related to learning and implementation. Avoid any stock-specific question.
Nifty Weekly analysis with Options strategies
After made a all time high of 15915.65 on 28th June 2021, We saw some profit booking in Nifty. Now Nifty is taking support at the rising trendline. A breakdown will lead to the next crucial support level at 15450
As I have shared in the last weekly analysis post, On the Upside 15950 – 16000 is acting as the breakout zone and a breakout will give further upside levels till 16250. On the downside, 15500 is acting as a strong support level. A breakdown will give us a SELL signal again for the target of 15350 & 15000..
This whole week we saw that Nifty was trading in the range of 15950 to 15650. Now, we have to wait and watch whether nifty is giving a sustainable breakout from 15950 – 16000 for further upside levels. Till the trade with range bound strategies only.
If we got a sustainable breakout in Nifty, then 16200 & 16400 should be the next targets for the short term.
On the downside, 15400 is playing a crucial and psychological level and a breakdown will lead to further weakness in Nifty. So keep following and keep your positions with proper hedge.
Nifty Weekly expiry option chain analysis
Based on the Option chain data, We can see highest Open Interest is at 15700 CE & same 15700 PE followed by 15800 CE and 15500 PE. Highest OI at CE indicates as the resistance level and highest OI at PE indicates as the support level.
PCR is also a good indicator to analyze immediate support and resistance levels. If PCR of any particular strike is below 0.60, this indicates an immediate support level and if PCR is above 2.0 that indicates an immediate resistance level.
At 15500, PCR value is 9.35, indicating an immediate support level and PCR at 15800 is 0.28, indicating an immediate resistance level.
- Read detailed article here: How to find Support and Resistance using Put Call Ratio or PCR?
Keep tracking open interest to analyze market participant’s behavior, so that you can adjust your position accordingly. If you don’t know how to analyze open interest for weekly option hedging strategies. Just enroll for our Option Strategies – A Mentorship Program.
Nifty weekly expiry Strategy: Iron Condor
Possible adjustments:
Initially, you can keep a stop loss of 15450 & 15850 for this strategy. Means square off if you find nifty is giving a breakout or breakdown. Or you can do this adjustment too. ( Do not hold this strategy is loss is more than 1800₹).
If you find that Nifty is giving a breakdown and sustaining below 15450, then square off call spread and bring it down to 300 points lower levels.
The same thing you can do with put spread means if you got a breakout from 15850. You can shift your put spread to 300 points up.
If you want to learn these Nifty and BankNifty weekly options strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(50% OFF).
Weekly analysis with best Options strategies for 9th July Exp Click To TweetBank Nifty Weekly analysis with options strategy
After given a breakout from 35000, you saw that Bank nifty was trading in a range of 35000 to 36000 and any decline till 34000 can be treat as a buy-on-dips opportunity.
We got the decline on 18th June but later it recovered and closed near its important level at 35000. This whole week BankNifty was trading between the range of 34000 to 35700. Now 34000 to 3600 is the range we may expect till we are getting a breakout or breakdown in the coming weeks. A breakout from 36000 will lead to the next upside target of 37700.
If you look at the chart, you will find that on the downside 34000 is acting as a strong support level, and on the upside 37700 is acting as a strong resistance level. This can be our range (34000 – 37700) for the short term.
The same view for this coming week also: The overall trend is UP so any decline till 34000 can be treat as a buy-on-dips opportunity. We can expect some further upside levels if banknifty manage to sustain above 36000. So these two levels (34000 & 36000) are important for the short to medium term. Right now the market is totally unpredictable so we have to focus more on risk management and trade with Limited risk range-bound strategies only.
Bank Nifty weekly expiry option chain analysis
Based on the Option chain data, We can see the highest Open Interest is at 35000 CE & 34500 PE followed by 35500 CE and 34700 PE. Highest OI at CE indicates the resistance level and the highest OI at PE indicates the support level.
PCR is also a good indicator to analyze immediate support and resistance levels. If PCR of any particular strike is below 0.60, this indicates an immediate support level and if PCR is above 2.0 that indicates an immediate resistance level.
At 34500, PCR value is 2.24, indicating an immediate support level and PCR at 35500 is 0.12, indicating an immediate resistance level. So based on the OI data, the weekly range can be 34500 – 35500 and the broad range could be 34000 – 36000.
- Read detailed article here: How to find Support and Resistance using Put Call Ratio or PCR?
Keep tracking open interest to analyze market participant’s behaviour, so that you can adjust your position accordingly. If you don’t know how to analyze open interest for weekly option hedging strategies. Just enrol for our Option Strategies – A Mentorship Program.
Bank Nifty weekly expiry Strategy: Iron Condor
Possible adjustments:
If you find that BankNifty gives a breakdown and sustaining below 34300, then Shift your Call spread to 800 points down.
The same thing you can do with put spread means if you got a breakout from 35550. You can shift your put spread to 800 points up.
If you want to learn these bank nifty weekly expiry strategy and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(50% OFF).
Post your comments in the comment box if you have a query related to the Nifty and Bank Nifty weekly analysis and options strategies. You can ask any question related to option trading in the comment box.
If you need More real-time assistance on Nifty and Bank nifty weekly analysis and options strategies, Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on these nifty and Bank nifty weekly expiry strategy. You can contact us on WhatsApp
*( Please avoid any question like which Call or Put we should buy in the coming week).
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- What Wikipedia Can’t Tell You About Trade Options for a Living
- Performance of the Option strategies
- A high probability option strategy in AXISBANK
DISCLAIMER: – we are not a SEBI research analyst. Views 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.
