Hey folks! I hope you are doing good. Every week, I’m writing this weekly blog post to provide you a weekly analysis of the market and the best possible Nifty and bank nifty weekly options strategies for the coming weekly expiry.
In this weekly blog post, I’m sharing my knowledge and experience to help our fellow traders. Last week I shared about Implied Volatility and its importance in options trading. You can read it here:
Today, I’m sharing one more link with you to read this week. This link is about the 8 reasons why most Intraday traders fail. Click on the below link:
Now, let’s come to our weekly analysis with Nifty and bank nifty weekly options strategies.
Weekly analysis and Nifty weekly options strategies
After a gap up opening on Monday, Nifty made a new high on Wednesday. On Thursday and Friday, Nifty took resistance on higher levels and we saw some negative closing.
Based on the charts, 14820 acts as the immediate resistance level (which is our first target, too), and 14090 is acting as an immediate support level. A breakdown from 14000 will lead to further downside levels.
Here one thing we need to keep in mind that the Trend is UP, and there is no sign of weakness, so here our strategy should be Buy-on-dips with every decline in the market till the nifty is holding 13000.
Below 13000, we will get a sell signal. So in simple terms, you can hold your long positions with a stoploss of 13000.
Nifty Weekly Option Chain analysis
Based on option chain data, the highest Open interest stands at 14600 CE & 14500 PE, followed by 14800 CE & 14000 PE. PCR of all strikes is 0.71, which indicates a neutral market. PCR at 14300 stands at 6.45, which is acting as an immediate support level.
The Put-call ratio at 14600 stands at 0.28, which is acting as a resistance level. Equally, an important indicator, i.e., Option Pain, is at 14500, indicating weekly expiry at 14500. A shift in option pain will provide further levels.
Significant open interest buildup on Call sides indicating that nifty is facing resistance from higher levels and expecting bearish activity in the coming week. Based on Option chain data, 14500 & 14300 are the support levels & 14600 & 14800 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 Option Strategy: Iron Condor
Initially, you can keep a stop loss of 14300 & 14800 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 14300, 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 14800. 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).
Weekly analysis with Bank Nifty weekly options strategies
After given a breakout from its crucial resistance level, i.e.,25200, we saw an excellent recovery in BankNifty. BankNifty is trading it in a time-high zone, and there is no sign of weakness.
We can’t neglect the possibility of profit booking in this continuous rally, so keep your trades with a proper hedge. 32600 is the level we should keep on the radar. A sustainable recovery will lead to the next target of 33300.
On the downside, 29000 is the crucial support level. A sell signal will only generate after a breakdown from this level. So if you see a downfall from the current level, our strategy should be buy-on-dips until BankNifty is holding 29000.
Bank Nifty weekly option chain analysis
Based on option chain data, the highest Open interest stands at 32500 CE & 32000 PE, followed by 33000 CE & 31500 PE. PCR of all strikes is 0.76, which indicates a neutral market. PCR at 32000 stands at 3.77, which is acting as an immediate support level.
The Put-call ratio at 33000 stands at 0.07, which is acting as a resistance level. Equally, important indicator Option Pain is at 32400, indicating weekly expiry at 32400. 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 sustaining below 31550, 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 33000. You can shift your put spread to 1000 points up.
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).
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DISCLAIMER: – we are not a SEBI research analyst. Weekly analysis, 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.