Hello guys, I hope you are doing good. Every week I’m sharing my weekly expiry analysis with option strategies in Nifty and BankNifty. I hope these Weekly expiry option strategies are helping you to take some better decisions.
In this article I’m sharing the solution of some comman problems. You can check my previous weekly article on below link:
- Weekly Newsletter: Weekly analysis of Indian Stock Market
1st February on budget day, we saw a good upside rally in both the indexes. But after this upside rally where BankNifty broke out from its crucial resistance level, Nifty is trading in its wide range only. But the trend indicates that the market is in the complete grip of bulls.
I was following 16800 as the dedicated support level in Nifty and 36300 in Banknifty. On 1st February, both the indices managed to hold these levels, which are a good sign for a short to medium-term bullish trend.
If we look at the FIIs data, Last week FIIs was the net seller in our market from last many weeks. At the current stage, Market looks neutral because Nifty is trading in range with neutral sentiment.
I always prefer to react to markets instead of predicting things. I will only react once the market gives a Buy or sell signal itself. Before deciding, let us look at the charts.
Nifty weekly expiry with option strategies
We saw a good upside rally in Nifty on 1st February 2022 and closed at 17576.85. Later, 3rd and 4th February, we saw a decline in Nifty but still Nifty is trading in a wide range of 18350 – 16836, that indicates a neutral trend in Nifty.
As per my analysis, 18300 – 16800 is the range where we can follow. A breakout or breakdown will lead to further levels. Right now, there is no clear indication.
This is the best time to trade with some delta neutal strategies. High IV senario will give you some good result compare to low IV senario. So focus more on range-bound strategies but keep you risk on limited side.
A long trade we should initiate only above 18300 and if Nifty manages to sustain below 16800 then only, we should initiate a short trade. Let us look at the option chain data.
Nifty weekly Options Chain analysis
Based on option chain data, the highest Open interest stands at 17800 CE & 17500 PE, followed by 18000 CE & 17000 PE. PCR of all strikes is 0.77, which indicates a neutral market. PCR at 17400 stands at 5.03, which is acting as an immediate support level.
The Put-call ratio at 17800 stands at 0.09, which is acting as a resistance level. Equally, an important indicator Option Pain is at 17600, indicating weekly expiry at 17600. A shift in option pain will provide further levels.
Significant open interest buildup on both sides, especially 17600 CE, 17800 CE & 17500 PE, which indicates that the market is expecting to remain in a range only but getting support from lower levels. Based on Option chain data, 17500, 17400 are good support levels and 17700 & 17800 are good resistance levels for this expiry.
Keep tracking open interest to analyze market participant’s behavior. If you don’t know how to analyze open interest for weekly options strategies. Just enroll for our Option Strategies – A Mentorship Program with a 10% extra discount.
Nifty Options Strategy: Iron Condor
Initially, you can keep a stop loss of 17250 & 17850 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 17250 then square off 17750 CE & 17950 CE in profit, and short 17400 CE and buy 17600 CE.
The same thing you could do with put spread means if you got a breakout from 17850. You can shift your put spread to 350 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.
BankNifty Weekly Analysis with option strategies
After making a low of 36375.35, we saw a good upside rally in Banknifty and managed to close above 38850 which was the strong resistance level. Now this level should hold for further upside levels in BankNifty.
IIf BankNifty manage to sustain above 38850 then the next targets would be 40150 & 41800.
On the downside, 37000 is acting as the crucial support level, A breakdown will lead to again some downside levels.
Overall trend is UP but RSI is giving a negative diversion, this can lead to some pressure in BankNifty. So, if you find that BankNifty is breaking down from 38850 then a short trade can be a good opportunity for the current expiry.
Bank Nifty Weekly option chain analysis
Based on option chain data, the highest Open interest stands at 39000 CE & 39000 PE, followed by 39500 CE & 38000 PE. PCR of all strikes is 0.67, which indicates a neutral trend. PCR at 38500 stands at 3.80, which is acting as an immediate support level.
The Put-call ratio at 39500 stands at 0.13, which is acting as a resistance level. Equally, important indicator “Option Pain” is 39000, indicating weekly expiry at 39000. A shift in option pain will provide further levels.
If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty Weekly Option Strategy: Iron Condor
If you find that BankNifty gives a breakdown and sustains below 37800, then Shift your Call spread to 1000 points down.
The same thing you could do with put spread means if you got a breakout from 39500. You can shift your put spread to 1000 points up.
If you want to learn these Weekly expiry option strategies and their adjustments in more practical ways with live mentorship, you can enroll in our Option Strategies – A Mentorship Program.
Much Check this also–
- Nifty Option Strategy for Budget Session,
- Bank Nifty Option strategy for Budget Session,
- The Collar Option Strategy – An In-Depth Guide [+ Examples]
Post your comments in the comment box if you have a query related to the Weekly options strategies. You can ask any question related to options trading in the comment box.
If you need More real-time assistance on Nifty and Banknifty weekly expiry 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 options strategies. You can contact us on WhatsApp
*( Please avoid any question related to which Call or Put we should buy in the coming week).
Highly Rated Best Intraday strategy for Bank Nifty Future
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.
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 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.