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Nifty and Bank Nifty weekly analysis with Option strategy for 22nd APR Exp

• Updated on: April 16, 2021
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Successful trading is all about hitting the right paddle with proper predefined rules. But how can we make these predefined rules for our trading plan? What are the do’s and don’t we need to follow to create a profitable trading plan for us? In my bank nifty weekly analysis post, I’m trying to share what I have learned and implemented to achieve my desirable return from any type of market. Read this post until the end to understand further.

When we are talking about “Trading plan“, we have to work on 3 important aspects:

  1. Trading Capital
  2. Risk per trade
  3. Position sizing

Let’s Start with Trading Capital. If you are a beginner and just started your trading career, I recommend you should deploy only that much of capital that you can effort to lose. Why I’m saying this?

Because when you start, You have to learn so many things to be a successful trader. It not a one day or one-week game that you just learn a strategy from a youtube video and the next moment you will start earning.

Successful trading required lots of discipline, patience, and dedication. You can’t learn all these things by reading blogs or watching videos.
You have to get into the field. Have to break your hands in the mud. Then only you will get that experience. So always keep yourself ready to give something first to get your desirable achievements in return.

One more reason is When you in a learning phase and you know you will definitely do some mistakes, so You should be ready to pay the price for that mistake. That price will help to be a successful trader and will open a new path for your successful trading.

If you are an intermediate trader, your capital for one trade should not be more than 20% of the total capital you have.

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Second Thing is “Risk per trade“. If you want to survive in this market, your risk per trade should not be more than 2-3% of your total deployed capital. For example, if I have a capital of 2 Lakh than my risk per trade should not be more than 4000₹ – 6000₹. If you are following this rule, you can stay for a longer time.

The third thing is “Position sizing”. Position sizing reflects a number of quantities you should have for one trade. Your risk per trade decides your position sizing. For example, if my risk per trade is 4000₹ that means if stop loss hit my loss should not be more than 4000₹. Let us understand this with one more example. Let’s say a stock is trading at 320, stop loss is 280 and risk per trade is 4000₹. So our position sizing should be 4000/ (320 – 280) = 4000/ 40 = 100 quantities.

We should take only 100 quantities to keep my loss at 4000₹. This is the simple calculation and you must do this calculation before entre in any trade.

I hope now you understand what are the 3 important steps you need to follow to be a successful trader. Believe me, you have to adopt these steps in your trading activity. You can keep it from starting or lose some money and then start working on it. but ultimately you have to adopt these 3 steps.

I too lost some money in starting and then I finally started with option hedging strategies. These hedging strategies are helping to keep my risk on the lower side and keep me calm without any worry about what will happen to the market tomorrow. Now I can manage my trade with more discipline and patience. You can visit below for more details.

Nifty Weekly analysis with Options strategy

Nifty Chart today

In my last Nifty & Bank Nifty weekly expiry strategy post I have shared that 14350 is acting as a strong support level. On 25th March 2021 too Nifty was trying to break that level but recovered later and we saw a sharp reversal till 14850.

Same thing we saw this week too. After a gap up opening on Monday, we saw a sharp decline till 14248.70 but on the next day again Nifty gave a reversal and closed above 14350. This indicates that 14350 is still acting as an immediate support level.

Now, you can see on the chart that 14350 – 14250 is acting as an immediate support zone. A breakout will lead to the next psychological level of 14000. A suggest we should initiate a short trade only below 14250 for the next target of 14000. A breakdown from 14000 will lead to the next crucial support at 13700.

On the Upside, First resistance placed at 15000 and the second resistance is at 15500. A breakout from 15500 will lead to further upside levels.

For weekly proceptive, we can use a range of 14350 – 15000 for our range-bound strategies. Always follow your risk management rules.

Nifty weekly Options Chain analysis

nifty weekly option chain analysis

Based on option chain data, the highest Open interest stands at 15000 CE & 14500 PE, followed by 14700 CE & 14600 PE. PCR of all strikes is 1.11, which indicates a neutral. PCR at 14500 stands at 2.91, which is acting as an immediate support level.

The Put-call ratio at 1500 stands at 0.15, which is acting as a resistance level. Equally, important indicator Option Pain is at 14600, indicating weekly expiry at 14600. A shift in option pain will provide further levels of expiry. So keep tracking max pain.

Significant open interest buildup on the PUT side, indicates that the market is facing support from the lower side. So keep tracking this OI to understand the market behaviour.

Keep tracking open interest to analyze market participant’s 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: Iron Condor

Best nifty weekly option strategy

Possible adjustments:

Initially, you can keep a stop loss of 15000 & 14250 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 14250 then square off 14900 CE & 15050 CE in profit, and short 14500 CE and buy 14650 CE.

The same thing you can do with put spread means if you got a breakout from 15000. You can shift your put spread to 500 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(33% OFF).

BankNifty Weekly Analysis with options strategy

Bank nifty weekly chart

After a sharp decline from the higher levels, we saw that BankNifty is trying to take support from it’s strong support zone i.e. 30800 – 29800. A sustainable recovery from the said range is very important for the medium to long term trend of Banknifty.

Right now, the short term trend is down but giving a good opportunity for those who missed the previous rally. You can take a long trade with a stop loss below 29500. A breakdown from 29500 will change its medium-term trend into bearish.

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Here one thing you should keep in mind that the market is highly volatile due to COVID-19 situations. So do not hold any naked trade here. I always prefer to hedge my overnight long position with PUTs. So do not keep any naked position in your account at least for the next few weeks.

Based on the charts, Weekly range in banknifty is 33500 – 30500. I suggest trade with proper hedge and keep your positions with limited risk on both sides.

Bank Nifty Weekly options chain analysis

banknifty weekly oi analysis

Based on option chain data, the highest Open interest stands at 33000 CE & 32000 PE, followed by 32500 CE & 31000 PE. PCR of all strikes is 1.05, which indicates a neutral market. PCR at 31500 stands at 6.21, which is acting as an immediate support level.

The Put-call ratio at 33000 stands at 0.01, which is acting as a resistance level. Equally, important indicator Option Pain is at 32100, indicating weekly expiry at 32100. A shift in option pain will provide further levels.

Remember one thing: When IV is high, data can change anytime so keep following more closely.

If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.

Bank Nifty best Weekly Options Strategy: Iron Condor

BankNifty best option strategy

Possible adjustments:

If you find that BankNifty gives a breakdown and sustaining below 33100, 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 31200. 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 enrol in our Option Strategies – A Mentorship Program(33% OFF).

Much Check this also– Performance of the Option strategies, Nifty & BankNifty Weekly Analysis with Option strategy, Nifty Option Strategy for Budget SessionA low-risk options strategy in LICHSGFINAn iron condor options strategy in ICICIBANKReverse Jade Lizard options strategy in UPLA high probability options strategy in YESBANK

Post your comments in the comment box if you have a query related to the Nifty and Bank Nifty Weekly analysis with options hedging 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 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. You can contact us on WhatsApp

*( Please avoid any question like which Call or Put we should buy in the coming week).


Options Strategies – A Mentorship Program

On September 01, 2019, We have launched a new mentorship program for Option strategies, in which we’ll discuss how can we deploy these strategies? What rules we should follow before taking a trade? And what should be our adjustments if the script is moving against your direction?

The best strategy for Bank Nifty Future Intraday

We Introduce a new BankNifty Future strategy for Intraday. Gave a 90% return in the last 6 months. Please check the link below for more information.


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.

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Sachin Sival is the founder and CEO of Replete Equities, an options trading company that specializes in delta hedging. A self-taught trader, Sachin has a passion for volatility trading and stock trading. Sachin loves to hone his skills by reading up on new strategies and techniques as well as taking part in industry events. In addition to being a successful entrepreneur, Sachin also takes pleasure in photography - as a hobby.

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