After a good rally, nowadays we can see Nifty and Banknifty both are trading in a range. In the weekly analysis post, we will discuss the range for the coming week and the options strategies we can follow for the 16th June weekly expiry in Nifty and Bank Nifty.
we can see that volumes are not that great, and when volumes are low in this rally, it indicates that the rally is not that convincing. In this type of Low volume market, it very important that we should keep our risk management on the higher side.
In my every article, I’m telling you that keeps more and more focus on Risk Management because this is the only holy grail which can make your trading profitable. (Click here to read the previous articles)
- So before entre in any trade, always calculate how much risk you are taking to make money?
One more most important aspect of successful trading is trading psychology. It’s a broad subject and very few are talking about it. I feel it’s your Trading Psychology who can bring a real change to make your trading profitable.
How you are reacting in any particular situation, will tell you how much you can make or break? We will talk more about Trading Psychology in our next weekly analysis post. Now I have a question for you:
- What is biggest obstacle you are facing right now in you trading?
Type in comment box and I will try to provide you the best solution for that particular problem. You can ask your questions on twitter too. Just tag me there and i will reply all your questions.
Remember one thing, the more you engage the more you will learn.
- 1 Nifty Weekly analysis with Options strategies
- 2 Bank Nifty Weekly analysis with options strategy
- 3 Options Strategies – A Mentorship Program
- 4 The best strategy for Bank Nifty Future Intraday
Nifty Weekly analysis with Options strategies
After a breakout from 10575, we can see Nifty was traded in a range this week. As per the chart, the previous resistance zone (10325 – 10575) is acting as an immediate support zone right now.
The overall trend is UP and we can hold a long position until nifty is trading above the new support zone (10325 -10575). As I said earlier, volumes are not impressive so trade with some cautious.
Here we should not forget about the crucial and psychological level of 10000. We can only say that trend is in a downtrend after we got a breakdown from 10000. Below 10000, again Nifty will come in the territory of Bears.
But we are not ones who believe in predicting, we believe in reacting. So as per the chart and data, right now Market is in Uptrend that’s why we are holding a long position if we will get a breakdown from the support levels we can reverse our position.
This is the main reason I always say that we should focus more on trade management. Because everyday something is happening in the market. Today Market is going UP and next day Market can do down. In that case, How will you manage your trade? If you have your trade management plan ready, you chances to make money will increase to a higher level.
This is the main reason I have started to trade with Options hedging strategies. Because these strategies are giving more flexibility to manage your trade properly. You can react based on the data available. No need to predict anything. We can go where the market is going.
We should not keep your focus on How to beat the market? (which no one can do), You should keep your focus only on How to react based on the market? Once you start reacting, you will find that your trading has improved.
If you don’t know how to react on the market, can check our Option Strategies – A Mentorship Program.
Nifty Weekly expiry option chain analysis
Based on option chain data, the highest Open interest stands at 10800 CE & 10700 PE, followed by 11000 CE & 10600 PE. PCR of all strikes is 0.92, which indicates a neutral market. PCR at 10600 stands at 5.02, which is acting as an immediate support level.
The Put-call ratio at 11000 stands at 0.08, which is acting as a resistance level. Equally, important indicator Option Pain is at 10750, indicating weekly expiry at 10750. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on the Call sides from 10800 to 11000. Indicating that Nifty is facing good resistance around 11000 levels. So based on the OI, the possible range for this week should be 10600 – 11000.
Keep tracking change in open interest to analyze market participant’s behaviour, so that you can adjust your position accordingly. If you don’t know how to analyze open interest for weekly options strategies. Just enrol for our Option Strategies – A Mentorship Program.
Nifty weekly expiry Strategy: Iron Condor
Initially, you can keep a stop loss of 10500 & 10900 for this strategy. Means square off if you find nifty is giving a breakout or breakdown. Or you can do this adjustment too. ( Do not hold this strategy is loss is more than 1800₹).
If you find that Nifty is giving a breakdown and sustaining below 10500, 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 10900. You can shift your put spread to 300 points up.
If you want to learn these Nifty and BankNifty weekly options strategies and their adjustments in more practical ways with live mentorship, You can enrol in our Option Strategies – A Mentorship Program (33% OFF, valid till 15th July Expiry).
Bank Nifty Weekly analysis with options strategy
In the last weekly analysis post, I have shared that 22500 is acting as an immediate resistance level. This week we saw breakout and Banknifty made a high of 23080.60 but again we saw some profit booking in Banknifty which drag it again below 22500.
Now, If we look at the chart, we can see that trend is UP, although Volumes are low but still chart says the Banknifty is in UPTREND.
Now based on the chart, 21000 – 22500 is the range which is acting as an immediate support zone. A breakdown from this zone can bring banknifty again in the territory of Bears.
Right now, If you are holding a long trade, I suggest keeping it hold with proper risk management. For a fresh trade, we should wait and let the market give a clear indication of a buy or sell signal.
Bank Nifty weekly expiry option chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 23000 CE & 22000 PE, followed by 22500 CE & 23500 PE. PCR of all strikes is 0.76, which indicates a neutral market. PCR at 21000 stands at 6.77, which is acting as an immediate support level.
The Put-call ratio at 23000 stands at 0.21, which is acting as a resistance level. Equally, important indicator Option Pain is at 22600, indicating weekly expiry at 22600. A shift in option pain will provide further levels.
If you don’t know how to do the banknifty weekly option chain analysis, Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty weekly expiry Strategy: Iron Condor
If you find that BankNifty gives a breakdown and sustaining below 21900, 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 23150. You can shift your put spread to 1000 points up.
If you want to learn these bank nifty weekly expiry strategy and their adjustments in more practical ways with live mentorship, You can enrol in our Option Strategies – A Mentorship Program(33% OFF).
Post your comments in the comment box if you have a query related to the Nifty and Bank Nifty weekly analysis and options strategies. You can ask any question related to option trading in the comment box.
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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. Views or the nifty and bank nifty weekly analysis and 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.
8+ Years working as a derivative trader, Option Writer, Blogger, Trader by passion, Keen Follower of Indian share market