Hey Folks! I hope you are safe and healthy in this COVID-19 pandemic. In this weekly analysis with options strategies article, I’m sharing my view based on the chart and option chain analysis for Nifty and BankNifty. Apart from this, I’m sharing weekly options strategies of Nifty and BankNifty for the coming week based on the weekly analysis.
In this weekly newsletter, I’m sharing some valuable tips one can follow to be a more disciplined trader also. So keep following this weekly newsletter.
As you know, Patience and Discipline are the two most important things in successful trading.
These two come when you know what you are doing? Why you are doing it? And how you will react when things go against you? So before you start trading with your hard-earned money, I suggest you should try to find the answers to these questions first.
As we are entering the monthly expiry week and it’s almost one month we are trading continuously, I want to take a pause today so that we can look back a little to analyze what we have done in this whole month. It will help to make a better trading plan for the coming month.
Today, I’m sharing the link of my previous weekly newsletters. Go and read the articles that I’m sharing every week. These articles will surely help to make some better trading plan for the coming month. Try to find the answers of all your question and if still you have any doubts, ask me in the comment box. I will love to solve all your queries.
- Click here to real previous weekly newsletters – Replete Weekly
- Trading Psychology: 10 Biases to Avoid!
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- 1 Nifty Weekly analysis with options strategies
- 2 Banknifty Weekly analysis with banknifty options strategy
- 3 Options Strategies – A Mentorship Program
- 4 Highly Rated Intraday Futures & options strategies just for you.
Nifty Weekly analysis with options strategies
As I have shared on the last weekly analysis with Options strategies post that 17981 &18347 are the resistance levels for now and a breakout from 18347 will open a new path to the next target of 19034..
This week again we saw a good upside rally in Nifty and almost hit our first target of 17981 on friday. Now 18000 – 18300 is the crucial resistance level in terms of firther upside rally. A sustainable breakout will lead to our next target of 19034.
On the downside, 17250 is playing a psychological support level. A breakdown will give us some more downside levels. So the weekly range can be 17500 – 18000 for the coming monthly expiry.
Few people are asking that you are sharing only the range but not the direction. Why you are not sharing whether nifty will go UP or it will go down in the coming week?
One thing I want to share here, I believe in reaction not in the prediction. I’m not bothered about where nifty will go. Wherever it goes I will follow.
That’s the reason, I’m trading only the range, not the direction. Because I don’t need to do anything until Nifty is trading in my range and if it gives me a breakout or breakdown I can adjust my position accordingly.
Why waste my time to predict first and then wait to see that whether m I right or wrong when I can easily trade based on the current data and range? You can see a lot of messages on social media that Nifty will hit this or that. I’m saying let it hit this or that first, we can react based on that later.
You can see 70% times market consolidate in a range that means 70% accuracy market itself is giving to me, for rest 30% we can do the adjustments. What do you say? Isn’t it a better approach? After all, we are here to make money not to be a better predictor.– Sachin Sival
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Nifty Weekly analysis based on Option chain data
Based on option chain data, the highest Open interest stands at 18000 CE & 17000 PE, followed by 18500 CE & 17700 PE. PCR of all strikes is 1.19, which indicates a neutral market. PCR at 17700 stands at 3.79, which is acting as an immediate support level.
The Put-call ratio at 18200 stands at 0.04, which is acting as a resistance level. Equally, important indicator Option Pain is at 17800, indicating weekly expiry at 17800. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on both sides. Indicating a range-bound activity only. So based on the OI, the possible range for this week should be 17700 – 18200.
Keep tracking change in open interest to analyze market participant’s behavior, so that you can adjust your position accordingly. If you don’t know how to analyze open interest fo find best option trading strategy in nifty and bank nifty. Just enroll for our Option Strategies – A Mentorship Program.
Nifty weekly options Strategy: Iron Condor
Initially, you can keep a stop loss of 17630 & 18170 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 2500₹).
If you find that Nifty is giving a breakdown and sustaining below 17600, 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 18200. You can shift your put spread to 300 points up.
If you want to learn how to find the best nifty and banknifty option strategy and its adjustments in more practical ways with live mentorship, You can enrol in our Option Strategies – A Mentorship Program.
Banknifty Weekly analysis with banknifty options strategy
After spending more than 3 months in a tight range finally, BankNifty gave a breakout from 36000.
This week we saw a highly volatile movement in BankNifty but it manages to hold it’s important support zone i.e. 36000 – 36500.
Now 37700 is acting as a very crucial level and If banknifty manage to sustain above this crucial level we may see a new high very soon. A sustainable rally will lead to the next target of 39740.
Now On the downside 36400 is acting as the strong support level and a breakdown will lead to further downside levels.
I’m expecting some good earnings in the coming sessions. So follow us on different platforms very closely for some real-time updates.
BankNifty weekly analysis based on the option chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 38000 CE & 37000 PE, followed by 40000 CE & 37500 PE. PCR of all strikes is 0.91, which indicates a neutral zone. PCR at 37000 stands at 3.65, which is acting as an immediate support level.
The Put-call ratio at 38500 stands at 0.05, which is acting as a resistance level. Equally, important indicator Option Pain is at 37800, indicating weekly expiry at 37800. A shift in option pain will provide further levels.
If you don’t know how to do the bank nifty weekly options chain analysis to find your banknifty option strategy, Just enroll for our Option Strategies – A Mentorship Program.
BankNifty option Strategy: Iron Condor
Possible adjustments for this best banknifty option strategy are:
If you find that BankNifty gives a breakdown and sustaining below 37000, 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 38500. You can shift your put spread to 1000 points up.
If you want to learn this banknifty option strategy and its adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program.
Post your comments in the comment box if you have a query related to the weekly analysis and Best Nifty and BankNifty option Strategy. 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 weekly analysis with nifty and banknifty option strategy 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.