Hello guys. How are you? I hope you are doing good in your trading. I’m sharing weekly analysis and Nifty and Banknifty weekly Option strategy for the coming week in my Weekly post.
In this weekly post, I’m trying to share whatever I have learnt till now. After spending 8 years trading here, I understand one thing. Your trading psychology plays a crucial role in your successful trading.
Your strategy, Your risk management, your position sizing, your discipline in trading etc… All these things play an essential role. But how you behave in a particular situation that’s the primary thing.
So instead of just taking random trades, we have to follow the market. We need to understand first “How market behaves?” At least give some time to understand the market movement. If you understand market behaviour, your profitability will increase a lot.
See, Every person has a different mindset and a different comfort level. Whatever you are doing might not be good for me, and whatever I’m doing might not generate the same results for you. So try to figure out your comfort level first and create a strategy based on that level only.
Please do some research on yourself, learn the basics, understand market behaviour, and then implement them in your trading strategy. Once you implement all these things in your trading plan, you will realise that now you are on the right path. You will gain confidence and can take better decisions.
In the share market, Money is not coming from what trade you took? The money will only come based on “How you manage that trade?” So focus more on your trade management. It will help to make a better decision in a non-expected situation.
So instead of just gambling, try to make a proper trading plan first and trade like a professional is trading. Again I’m saying learn the basics first.
- 1 Nifty Weekly Analysis with Option Strategy
- 2 Banknifty Weekly analysis with option strategy
- 3 Looking for the Best strategy for Bank Nifty Future?
- 4 Options Strategies – A Mentorship Program
Nifty Weekly Analysis with Option Strategy
In the last weekly option strategies post, I shared that 15196 acts as a strong resistance level. You can see on the chart that nifty is consolidating near to this range.
Right now, there is no buy or sell signal is coming on the chart. If you look at the Fibonacci tool, you will find that 14815 & 15196 act as important levels. A breakout from 15196 will give us a new upside level till 15577, and a breakdown from 14815 will drag nifty to the lower level till 14343.
The overall trend is UP, and there is no sign of weakness. Now we have a range of 15200 to 14800, giving us a range-bound activity in nifty until we will not get a breakdown or breakout.
Those who are holding a long trade in nifty can keep holding with a stop loss below 14500. A new short or a new long is not advisable at the current price.
Nifty Option Chain analysis
Based on option chain data, the highest Open interest stands at 15500 CE & 15000 PE, followed by 16000 CE & 14500 PE. PCR of all strikes is 0.85, which indicates a neutral market. PCR at 14800 stands at 10, which is acting as an immediate support level.
The Put-call ratio at 15300 stands at 0.07, which is acting as a resistance level. Equally, important indicator Option Pain is at 15000, indicating weekly expiry at 15000. A shift in option pain will provide further levels.
On the call side, significant open interest buildup indicates that the market is trying to take some bearish movement in this expiry. Based on Option chain data, 14800, 14500 are good support levels & 15300, 15500 are good resistance levels for this expiry.
Keep tracking open interest to analyze market participants’ behaviour. If you don’t know how to analyze open interest. Just enrol for our Option Strategies – A Mentorship Program.
Nifty Weekly Option Strategy: Modified butterfly
This week I have created a directional strategy because I’m slightly bearish in Nifty.
If you find that Nifty gives a breakout and sustaining above 15500, then square off this strategy.
Banknifty Weekly analysis with option strategy
In the last banknifty weekly option strategy post, I shared that the overall trend is UP in banknifty and there is no sign of weakness. The same we saw this week.
Banknifty was traded in a range of 36500 to 34700 this week. Now 37000 – 37800 is acting as a powerful resistance zone. A breakout from this level will lead to higher levels.
On the downside, 34500 act as strong support zones. Below 34500, we can test 32500 again. So at this time, no fresh BUY or SELL trade advisable. Let’s wait for a breakout or breakdown to initiate a fresh trade.
Those holding longs can hold with a stop loss of 32500. Now 36500 – 34500 seems like a range for a range-bound activity in BankNifty. Better trade with a range-bound strategy until we are not getting any breakout or breakdown.
Bank Nifty option chain analysis
Based on option chain data, the highest Open interest stands at 36000 CE & 34000 PE, followed by 37000 CE & 35000 PE. PCR of all strikes is 0.71, which indicates a neutral market. PCR at 34500 stands at 10, which is acting as an immediate support level.
The Put-call ratio at 36000 stands at 0.13, which is acting as a resistance level. Equally, important indicator Option Pain is at 35400, indicating weekly expiry at 35400. A shift in option pain will provide further levels.
Open Interest analysis is very important. It will tell you where market participants are betting actually.
If you don’t know how to analyze open interest. Just enrol for our Option Strategies – A Mentorship Program.
BankNifty Weekly Option Strategy: Modified butterfly
Possible adjustments: No adjustment required. You can keep a stop loss at 36000 for this banknifty weekly option strategy
To learn the advanced adjustments, you can enroll to our Option Strategies – A Mentorship Program
Much Check this also- Reverse Jade Lizard option strategy in BHARTIARTL, Bull Call Ladder in ZEEL, Iron Condor in SBIN, Weekly Analysis & Option Strategies For 10th Oct Exp, Why People Lose Money & Nifty and Bank nifty index analysis with Option Strategy, Weekly Analysis and Options Strategy For the 6th May – 10th May 2019, Best Monthly Income Strategy in DIVISLAB for Feb 2021
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Looking for the Best strategy for Bank Nifty Future?
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Options Strategies – A Mentorship Program
On the 1st of September, 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?
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.