Hey folks! I hope you are healthy and safe. Every week I’m sharing this weekly post with the analyse of the current data. Based on the data, we are trying to find Nifty and Bank nifty’s support and resistance for the coming week. I’m sharing one nifty and bank nifty weekly expiry strategy for the coming week with adjustments in this weekly post. So read this post till the end to know the strategy for the coming week.
In my mostly-weekly posts, I’m mainly focusing on risk management and sharing my thoughts and experience based on my own risk management rule. I’m sharing how risk management is essential and why you should focus on risk management if you are trading in this stock market. You can read my previous posts here: Replete Weekly Newsletter
When we are trading in this share market, our capital protection is more important than anything else. If you are not making money, that’s completely OK, but you should not lose your capital. Your trading capital is like your cycle wheels, and without your wheels, your cycle can’t go anywhere.
Risk management helps to take some safe bet, and it will help paddle your cycle every day. As you know, we get a profit when we run the same process again and again. We are doing the same activity every day. We are searching traders and taking bets based on our analysis. Some trades can be profitable, but some trades go in loss.
Now, your priority is to monitor your loss-making bets. You don’t need to care about your profits, but you have to monitor your losses if you want to survive here for long term. Your losses are the only thing that can destroy your confidence, your capital, and they can drag you into the emotional trap where you will take some unnecessary bets because of your fear and great.
In morning I was reading a quote from Steve Burns. He says:
The fastest way to loose your whole trading account is to try to quickly double it.
He is an experienced trader, and he knows how we treat share market. We think that we can double or triple our capital in just one week or one month. One day, One person called me and said that I have 20k and want to make 40K every month. Can I do that?
Then I told him that the Share market is like a serious business. Like every business needs proper research, knowledge, tannings and initial capital. Same applies here too. You can archive your goal, but first, you have to try to archive some reasonable returns. Don’t expect anything unrealistic.
That’s why I always advise for risk management, especially in your initial days. It would help if you focused on how not to lose big instead of how to make big. Try to earn 1% consistently first, and then only you can approach 10%. That’s the reason I always advocate for the option hedging strategies if you don’t have that much knowledge and experience in the share market.
These option hedging strategies are not only helping to generate some decent (4% – 5%) return but helping to manage your risk too. These strategies are straightforward to learn and implement. Even a non-technical office going guy can learn and implement these strategies. If you want to learn and trade with these strategies can check our Mentorship program. I’ll always there to provide you with all the handhold support until you successfully start implementing these strategies. Check details on below link:
- 1 Nifty Weekly analysis with weekly expiry strategy
- 2 Bank Nifty Weekly analysis with weekly expiry strategy
- 3 Options Strategies – A Mentorship Program
- 4 The best strategy for Bank Nifty Future Intraday
Nifty Weekly analysis with weekly expiry strategy
After made a all time high of 15431.75 on 16th February, we saw some profit booking from higher levels and Nifty is trading in the range of 15000 – 15500.
The overall trend is still UP, but there is a negative diversion on RSI, indicating that we may see some downside levels in the coming session.
Now 14800 – 14600 is acting as an immediate support zone for the coming week, and a breakdown will lead to the next levels at 14350 & 13500. A breakdown from 13500 will convert short-term trend into bearish. So no short trade until Nifty is holding 13500.
On Upside, A breakout from 15570 will lead to the next target of 16120. Trade accordingly.
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Nifty weekly market update based on option chain data
Based on option chain data, the highest Open interest stands at 16000 CE & 15000 PE, followed by 15500 CE & 14500 PE. PCR of all strikes is 1.05, which indicates a neutral market. PCR at 15000 stands at 2.15, which is acting as an immediate support level.
The Put-call ratio at 15300 stands at 0.15, which is acting as a resistance level. Equally, an important indicator, i.e., Option Pain, is at 1500, indicating weekly expiry at 15000. A shift in option pain will provide further levels.
On both sides, significant open interest buildup indicates that nifty is facing support from both sides and expecting range-bound activity with a bullish trend in the coming week. Based on Option chain data, 15000 & 14800 are the support levels & 15300 & 15500 are the resistance levels for this expiry.
Keep tracking open interest to analyze market participants’ behavior if you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.
Nifty Weekly Expiry Strategy: Iron Condor
Initially, you can keep a stop loss of 14850 & 15450 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 14850, 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 15450. You can shift your put spread to 300 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 expiring very soon).
Bank Nifty Weekly analysis with weekly expiry strategy
After made an all-time high of 37708.75 on 16th February, we saw some profit booking from higher levels, and Bank Nifty is trading in the range of 36000 – 37500.
The overall trend is still UP, and there is no sign of weakness. So we can expect some range bound activity in the coming week.
Now 35500 – 34500 is acting as an immediate support zone for the coming week, and a breakdown will lead to the next levels at 32600 & 31500. A breakdown from 29700 will convert short-term trend into bearish. So no short trade until Nifty is holding 29700.
On Upside, A breakout from 37500 will lead to the next target of 39500. Trade accordingly.
Bank Nifty weekly market update based on option chain data
Based on option chain data, the highest Open interest stands at 37000 CE & 36000 PE, followed by 38000 CE & 35000 PE. PCR of all strikes is 0.98, which indicates a neutral market. PCR at 36000 stands at 2.97, which is acting as an immediate support level.
The Put-call ratio at 37000 stands at 0.23, which is acting as a resistance level. Equally important indicator Option Pain is at 36300, indicating weekly expiry at 36300. A shift in option pain will provide further expiry levels.
If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty Weekly Expiry Strategy: Broken Wing butterfly
For this strategy, follow a stop loss of 35500. means square off this strategy if you see a breakdown from 35500. On upside no adjustments required.
If you want to learn these Weekly expiry options strategies and their adjustments in more practical ways with live mentorship, You can enroll 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 Session, A low-risk options strategy in LICHSGFIN, An iron condor options strategy in ICICIBANK, Reverse Jade Lizard options strategy in UPL, A high probability options strategy in YESBANK
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*( 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 Options 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 decent return consistently. Please check the link below for more information.
DISCLAIMER: – we are not a SEBI research analyst. Weekly market update, Views or the options strategies 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.