Weekly Analysis and Best Options Strategy For 09th March 2023 Expiry
Hello friend, I hope you are safe and healthy. Nowadays, the market is highly volatile. In this type of market, risk management plays a major role. Without proper risk management is hard to service. That’s the reason, in mostly all my weekly analysis posts, I’m giving more importance to Risk management.
In this type of market always try to protect your capital and take a precalculated risk only. Don’t try to fight with the market, Just focus on your survival. If you manage to survive, profit will come automatically.
Remember one thing: We don’t need to do anything for our target. Target will come automatically, it’s not in our hands.
The only market knows what will happen next. Only one thing is in our hands, and that is our risk or stop-loss.
If we keep following our stop loss and focus on “RISK MANAGEMENT”, the market will reward you by itself. So focus on how to minimize risk and let the market do whatever it wants to do.
Keep your positions with proper hedge and buy good quality stocks at every fall in this market for your medium to long-term perspective.
Nifty chart this week:
In my last weekly analysis and options strategy post I shared that: if you look at the Fibonacci tool you will find that 17565 & 17817 are 61.8% & 50% retracement levels respectively. This zone acts as a reversal zone. If Nifty manages to sustain below this zone then we may see some more downside movement till 17200.
Now look at the chart, you will find that On February 23rd, 2023 Nifty gave a breakdown from 17565 and then we saw a sharp decline and Nifty made a low of 17255.20. Later we saw some recovery and on Friday Nifty again closed between the range of 17565 – 17817.
Now again 17565 – 17817 is acting as the reversal zone and if Nifty manages to sustain above this zone, will trigger a long trade, and the trend will change to Bullish.
Now from here, there are three possibilities:
- Nifty will trade in the range of 17565 – 17817.
- Nifty will give a breakout from 17817. or
- Nifty will again fall and close below 17565.
Now, Based on the above possibilities, we can follow below trading plan.
Trading Plan for the coming week: If Nifty follows the above first possibilities then trade with a range-bound strategy until Nifty is not giving a proper breakout from 17817. And If Nifty fall again and closes below 17565 then again we can initiate a short trade while keeping stop loss above 17817.
The overall trend is Bearish to neutral, and there is no clear sign of a trend. So a range-bound strategy is advisable based on the current chart pattern.
if you don’t know how to trade with limited risk strategies? Come and join our Mentorship program, where I will teach you how to generate consistent monthly returns while keeping your risk on the limited side. Click on the below button:
Open Interest Analysis:
Based on option chain data, the highest Open interest stands at 18000 CE & 17500 PE, followed by 17900 CE & 17400 PE. PCR of all strikes is 1.13, which is a neutral zone. PCR at 17500 stands at 2.47, which is acting as an immediate support level, and PCR at 17800 stands at 0.01, which is acting as a resistance level. Equally, substantial indicator Option Pain is at 17600, indicating weekly expiry at 16600. A shift in option pain will provide further levels.
The volatility is high in the market, so Need to track closely for any further shift in range as per option chain analysis.
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 Option Strategy: Modified Iron Condor
Possible adjustments for Nifty weekly option strategy
Initially, you can keep a stop loss of 17350 & 1785000 for this strategy. This 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 200 points lower levels.
The same thing you can do with put spread means if you got a breakout from 17850. You can shift your put spread to 200 points up.
Apart from the above adjustments, we will do some reverse buying also to reduce the risk. These adjustments we share in our premium channel. You can join by clicking on the below button.
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.
Weekly Analysis: Banknifty chart this week:
This week we saw some rally in banking stocks. BankNifty took support near 39900 and close above the 50% retracement level i.e. 40753.
In my last weekly market update post, I said that: The overall trend is DOWN, but if BankNifty manages to take support near 39900 then we may see some upside level. The same as we saw this week.
Now 41759 is the level that you can keep on the radar. A sustainable breakout from this level will generate a long signal. and the trend will change to bullish.
On the downside, 39900 is the crucial support level and a short trade will trigger only after a successful breakdown from 39900.
So wait for a clear indication or breakout or breakdown till then trade with range-bound strategies.
Bank Nifty option chain analysis
Based on option chain data, the highest open interest stands at 42000 CE & 41000 PE followed by 41000 CE & 40500 PE. PCR of all strikes stands at 1.35, which is an overbought zone. PCR at 40500 stands at 4.13, which is acting as an immediate support zone. PCR at 42000 stands at 0.06, which is acting as an immediate resistance zone. Option pain stands at 41200, giving us an expiry level. Keep tracking this option pain level. A shift in option pain will provide a new standard for expiry.
Bank Nifty options strategy:
Initially, you can keep a stop loss of 40650 & 42150 for this strategy. This 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 40600, then square off the call spread and bring it down to 700 points lower levels.
The same thing you can do with put spread means if you got a breakout from 42200. You can shift your put spread to 700 points up.
Apart from the above adjustments, we will do some reverse buying also to reduce the risk. These adjustments we share in our premium channel. You can join by clicking on the below button.
To learn the advanced adjustments, you can enroll in our Option Strategies – A Mentorship Program
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 Weekly analysis and Weekly option strategy. You can ask any question related to options trading in the comment box.
If you need More real-time assistance on the Nifty and Banknifty weekly analysis and option strategies, Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on these weekly option strategies. You can contact us on WhatsApp.
Must Check these also:
Best 3 Intraday Option Selling Strategies In Nifty & BankNifty
Looking to improve your intraday trading strategy? Look no further than TradePik’s comprehensive guide to the best intraday option selling strategies. Discover proven methods for maximizing your profits and minimizing your risks, with expert advice and step-by-step instructions for every level of trader. Start your journey to success today with TradePik!
Options Strategies – A Mentorship Program
Learn About Trading Options in a course led by an Industry Expert. It doesn’t matter how old you are, the mentorship program is open to everyone who wants to learn more about the various option trading strategies. You’ll learn everything you need to know about these strategies and more. Don’t wait, Enroll today!
DISCLAIMER: – we are not a SEBI research analyst. Views posted in this weekly analysis post and weekly options strategies are 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 aware of the risk inherent in securities trading.
