After a good rally, nowadays we can see Nifty and Banknifty both are trading in a range. In the weekly analysis post, we will discuss the range for the coming week and the options strategies we can follow for the July 13 weekly expiry in Nifty and Bank Nifty.
We can see that volumes are great, and when volumes are high in any rally, it indicates that the rally is convincing. In this type of high-volume market, it is very important that we should keep our risk management on the higher side.
In every article, I’m telling you that you should keep more focus on Risk Management because this is the only holy grail that can make your trading profitable. (Click here to read the previous articles)
So before entre in any trade, always calculate how much risk you are taking to make money.
One more important aspect of successful trading is trading psychology. It’s a broad subject and very few are talking about it. I feel it’s your Trading Psychology that can bring a real change to make your trading profitable. I have written a few articles on Trading Psychology. Please read here: Trading Psychology
How you are reacting in any particular situation, will decide how much you can make or break. I will talk more about Trading Psychology in my coming articles. Now I have a question for you:
- What is the biggest obstacle you are facing right now in your trading?
Type in the comment box and I will try to provide you with the best solution for that particular problem. You can ask your questions on Twitter too. Just tag me there and I will reply to all your questions.
Remember one thing, the more you engage the more you will learn.
Nifty Weekly Analysis with Options Strategies
After a breakout from 19100, Nifty was trading in a range of 19200 - 19500 this week. If you look at the chart, 19739 is acting as the next target for Nifty based on the Fibonacci extension tool.
The overall trend is UP and there is no sign of weakness. So we can hold a long position until nifty is trading above 19000. Good volumes on breakout are also indicating that breakout looks impressive.
Here we should not forget about the crucial and psychological level of 19000.
On the downside, We can only say that trend is changing after we got a breakdown from 18600. Below 18200, again Nifty will come in the territory of Bears.
But we do not believe in predicting, we believe in reacting. So as per the chart and data, right now Market is in an Uptrend that’s why we are holding a long position if we will get a breakdown from the support levels we can reverse our position.
This is the main reason I always say that we should focus more on trade management. Because every day something is happening in the market. Today Market is going UP and the next day Market can do down. In that case, How will you manage your trade? If you have your trade management plan ready, your chances to make money will increase to a higher level.
This is the main reason I have started to trade with Options hedging strategies. Because these strategies are giving more flexibility to manage your trade properly. You can react based on the data available. No need to predict anything. We can go where the market is going.
We should not keep our focus on How to beat the market? (and I think no one can do that), You should keep your focus only on How to react based on the market? Once you start reacting, you will find that your trading has improved.
If you don’t know how to react to the market, can check our Option Strategies – A Mentorship Program.
Nifty Weekly expiry option chain analysis
The highest Open interest stands at 19500 CE & 19400 PE, followed by 20000 CE & 19300 PE, based on option chain data. PCR of all strikes is 0.99, which indicates a neutral market. PCR at 19300 stands at 5.16, which is acting as an immediate support level.
The Put-call ratio at 19600 stands at 0.14, which is acting as a resistance level. Equally, important indicator Option Pain is at 19500, indicating weekly expiry at 19500. A shift in option pain will provide further levels of expiry and it keeps changing based on the market participants behavior. So keep tracking max pain.
Significant open interest buildup on the Call sides from 19500 to 20000. Indicating that Nifty is facing good resistance around 19500 - 20000 levels. So based on the OI, the possible range for this week should be 19300 – 19600.
Keep tracking changes in 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 options strategies. Just enrol for our Option Strategies – A Mentorship Program.
Nifty weekly expiry Strategy: Iron Condor
Initially, you can keep a stop loss of 19200 & 19700 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 if the loss is more than 6000₹).
If you find that Nifty is giving a breakdown and sustaining below 19200, 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 19700. 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 enrol in our Option Strategies – A Mentorship Program.
Bank Nifty Weekly Analysis with Options Strategy
In the last weekly analysis post, I shared that Banknifty needs to give a breakout from 44500 for further upside levels and this breakout will trigger a buy signal to initiate a long trade.
On June 30, BankNifty gave a breakout and hit the upside level of 44787. Upside movement continued on Monday and also that helped BankNifty to make a new all-time high of 45655.50.
On the upside, 45943 is acting as the immediate resistance and 44543 is acting as immediate support. You can follow this range until we are not getting any fresh breakouts or breakdowns in Banknifty.
The overall trend is UP and there is no sign of weakness. So do not take any contra trade and follow the trend.
Bank Nifty weekly expiry option chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 45000 CE & PE, followed by 45200 CE & 44500 PE. PCR of all strikes is 0.71, which indicates a neutral market. PCR at 44500 stands at 5.76, which is acting as an immediate support level.
The Put-call ratio at 45200 stands at 0.35, which is acting as a resistance level. Equally, important indicator Option Pain is at 45000, indicating weekly expiry at 45000. A shift in option pain will provide further levels.
If you don’t know how to do the bank nifty weekly option chain analysis, Just enrol for our Option Strategies – A Mentorship Program.
Bank Nifty weekly expiry Strategy: Iron Condor
If you find that BankNifty gives a breakdown and sustains below 44500, then Shift your Call spread to 1000 points down.
The same thing you can do with put spread means if you got a breakout from 45900. You can shift your put spread to 1000 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 enrol in our Option Strategies – A Mentorship Program(20% OFF for a limited time).
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.
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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.