Weekly Analysis | Nifty and Bank nifty weekly options strategy | June 22 weekly Expiry
Why you are trading with some range-bound strategies only? Read the post to find important levels and options strategies for the coming expiry.
Hey folks! How’s your trading going? Every week in this weekly analysis article, we are covering nifty and bank nifty option chain analysis and trying to find the weekly support and resistance with the help of technical charts.
Many peoples, who are following our weekly articles, are asking why you are trading with some range-bound strategies only. As we all know 70% of the time market consolidates in a range only. So we are trading with a range-bound approach, 70% accuracy, market itself is giving, for the rest 30% we can do the adjustments and can bring our loss to nominal.
One more persuasive reason to follow these non-directional/range-bound strategies is: You know every day something is happening in the market. One day it goes UP, and the next day it would comes down. So if you are trading with some directional strategies, you have to be more accurate in terms of trend and direction. Or we can say that you have to be more specific in predicting.
Now. when you are predicting something, there is a 50% probability either market will go as per your prediction or it will reverse from here. So the changes are 50-50 for every prediction. But if you are following no-directional or range-bound strategies, you don’t need to predict anything. You just needs to react based on the data available, and if data is changing, you can adjust your position accordingly.
Let us understand this with an example. Let’s say, you have done banknifty option chain analysis and find that the range as per the current Open interest is 2000 points (1000 points UP and 1000 points down from the current price). Now, if you are creating a strategy and keeping your breakevens based on this 2000 points range, you don’t need to do anything until Banknifty is trading between this range.
You can keep yourself calm and can focus on your other work. You don’t need to sit in front of the screen to monitor all the actions happening in the market. You can just place some price alerts in your app or terminal, and when an alert is triggered, you can adjust your position accordingly.
Because data is telling everything, data is telling you that now people have started to shift their positions, and you too can do the same. You don’t need to predict anything, just react based on the data, and that’s all. Now you have more probability of success.
Sounds Good? What do you think, is it not the easiest approach to generate some consistent money from the market by keeping your risk on a limited side? (Reply in the comment box)
But yes, you have to learn how to read the data. In starting, you may find it a little tricky, but believe me, once you begin implementing, you will find that this is the most natural thing you can do to analyze the trend and range.
- Want to learn how I’m analyzing this data? Want any real-time backend support to implement this data in your trading? You can join our Option Strategies – A Mentorship Program. I’ll be there to assist you with my experience to start trading with these Non-directional/ range-bound strategies with the help of data available to analyze.
Nifty option chain analysis with weekly options strategy
In the last weekly article, I shared that 18450 – 18500 is the small resistance that needs to break for further upside targets of 18705 & 18948. The first target has been achieved and heading towards our next target at 15960.
Now, 18900 - 19000 is acting as a strong resistance zone, a breakout will trigger a BUY alert.
On the downside, 18500 - 18400 is acting as the immediate support zone that you can keep as a trailing stoploss is holding any long trade in Nifty.
Overall Trend is completely Up so don’t take any contra trade here. For a weekly protective, you can expect 18500 – 19000 as the weekly range for the coming weekly expiry.
As I said earlier in this post that we are range-bound traders. So you can follow the above range to deploy a range-bound strategy for the coming week.
Nifty option chain analysis
Based on option chain data, the highest Open interest stands at 18800 CE & 18700 PE, followed by 18700 CE & 18800 PE. PCR of all strikes is 1.01, which indicates a neutral market. PCR at 18600 stands at 4.46, which is acting as an immediate support level.
The Put-call ratio at 19000 stands at 0.07, which is acting as a resistance level. Equally, important indicator Option Pain is at 18800, indicating weekly expiry at 18800. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on both sides from 18600 to 19000. Indicating that Nifty is facing good support around 18600 levels and resistance around 19000 levels. So based on the OI, the possible range for this week should be 18600 – 19000.
Keep tracking open interest to analyze market participants behavior. 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 Options Strategy: Broken Wing Butterfly
Possible adjustments:
Initially, you can keep a stop loss of 18700 for this strategy. This means square off if you find nifty is giving a breakdown.
If you find that banknifty is giving a breakdown, you can convert it into a butterfly strategy but shift higher calls to lower levels.
We will do some more adjustments to make it a low-loss or no-loss strategy to reduce the risk and increase profitability. To learn these adjustments either you can join our Mentorship Program or join the premium telegram channel.
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(20% OFF).
Bank Nifty option chain analysis with weekly Option Strategy
After being given a breakout from its all-time high i.e. 44151.81, banknifty couldn't sustain above this level and fall from a recent high. Now it is trading in 52 weeks high zone but a sustainable breakout is required for further upside levels.
If you look at the chart, you will find that on the downside 43147 is acting as a strong support level, and on the upside 44498 is acting as a strong resistance level. Banknifty needs to give a fresh breakdown or breakout for further levels.
Although the trend is completely UP but trading in a range. The market is totally unpredictable and a breakdown from 4300 will trigger a panic selling in banknifty. So trade cautiously.
Bank Nifty option chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 44000 CE & 43700 PE, followed by 43800 CE & 43500 PE. PCR of all strikes is 0.98, which indicates a neutral market. PCR at 43500 stands at 2.51, which is acting as an immediate support level.
The Put-call ratio at 44000 stands at 0.48, which is acting as a resistance level. Equally, the important indicator Option Pain is at 43700, indicating weekly expiry at 43700. A shift in option pain will provide further levels.
Remember one thing: IV is low so we are not getting enough premium, so trade with limited risk strategies only.
If you don’t know how to do the bank nifty option chain analysis, Just enroll in our Option Strategies – A Mentorship Program.
Bank Nifty Options Strategy: Broken Wing Butterfly
Because the overall trend is up, so I have created this bullish butterfly. If we find that Banknifty is giving a breakdown from the above-shared range, we can do some adjustments.
Possible adjustments:
Initially, you can keep a stop loss of 43600 for this strategy. This means square off if you find nifty is giving a breakdown.
If you find that banknifty is giving a breakdown, you can convert it into a butterfly strategy but shift higher calls to lower levels.
We will do some more adjustments to make it a low-loss or no-loss strategy to reduce the risk and increase profitability. To learn these adjustments either you can join our Mentorship Program or join the premium telegram channel.
In the above telegram channel, I’m sharing the logic also like why I do certain adjustments.
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(20% OFF).
Post your comments in the comment box if you have a query related to the Nifty and Bank Nifty option chain analysis and options strategy. You can ask any question related to options trading in the comment box.
If you need more real-time assistance on Nifty and Bank nifty option chain analysis and options strategy Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on these weekly options strategies.
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DISCLAIMER: – we are not SEBI research analysts. Views 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.
