Hello guys. I hope you had enjoyed a lot on the festival of lights Diwali. I wish you a very happy new year. Last year I started this weekly analysis with option strategy post and feel very proud to say that I got a huge appreciation in terms of the feedback I got from my readers.
I got feedback and suggestions which I will try to implement in my blog this year. Through this blog, I just wanted to share what I learnt till now through my own personal trading and experience.
In my 8+ years trading career, I found that theoretical knowledge is important but without practical knowledge, you can’t be a successful trader.
So Don’t afraid or feel shy if you are doing mistakes in your trading. Remember one thing, without mistakes we can’t get that practical knowledge.
- 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 analysis and option strategy post, I shared that 11700 is a strong resistance level. Same we can saw on the chart.
After the corporate tax cut, we saw a huge rally in Nifty. Nifty took resistance at 11700 made a low of 11090.15. From 11090, we again saw a good rally in the market.
Last week Nifty was trading around this crucial level(11700). This week on 29th October, we saw a good breakout from 11700. I shared in my last post that the overall trend is positive. My system is giving me a short term target of 12100. Which is looking quite normal as per the current chart pattern.
If we talk about short to medium term trend, I think 11100 is good support from here and we can expect some more upside levels from here.
If you want to create a position for very short term perspective then 11450 should your stop-loss for a long trade.
Nifty Option Chain analysis
Based on option chain data, the highest Open interest stands at 12000 CE & 11800 PE, followed by 11900 CE & 11700 PE. PCR of all strikes is 1.05, which indicates a neutral market. PCR at 11800 stands at 2.92, which is acting as an immediate support level.
The Put-call ratio at 12000 stands at 0.17, which is acting as a resistance level. Equally, important indicator Option Pain is at 11850, indicating weekly expiry at 11850. A shift in option pain will provide further levels.
Significant open interest buildup on both side, Especially 11800 PE, 11900 CE & 12000 CE, which indicates that the market is trying to trade in a range only. Based on Option chain data, 11900, 12000 are good resistance levels & 11800 is a good support level for this expiry.
Keep tracking open interest to analyse 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: Iron Condor
Possible adjustments: Shift Call spread to 100 points lower level after a successful breakdown from 11750. Shift Put spread to 100 points higher level after a successful breakout from 12050.
There are some more advanced adjustments you can do to increase your profit%. To learn these adjustments you can enrol in our Option Strategies – A Mentorship Program.
Banknifty Weekly analysis with option strategy
In the last Weekly analysis and option strategy post, I shared that 50% – 61.8% always act as a reversal zone. Whenever index came in this range a no-trade zone starts.
The same you can see on the chart. After giving a good rally from lower levels Banknifty took some halt between this zone. On 29th October, we saw a good breakout from this zone.
The overall trend is positive in Banknifty and We can initiate a long trade here. On the upper side, Next resistance is at 30650. If bank nifty manages to sustain above the level we can see a new high very soon.
For those who are holding long positions can keep a stop loss around 28900. I just want to give one suggestion here.
Bank Nifty option chain analysis
Based on option chain data, the highest Open interest stands at 31000 CE & 29500 PE, followed by 30500 CE & 30000 PE. PCR of all strikes is 1.31, which indicates an overbought market. PCR at 30000 stands at 2.98, which is acting as an immediate support level.
The Put-call ratio at 30500 stands at 0.16, which is acting as a resistance level. Equally, important indicator Option Pain is at 30200, indicating weekly expiry at 30200. A shift in option pain will provide further levels.
If you don’t know how to analyze open interest. Just enrol for our Option Strategies – A Mentorship Program.
Bank Nifty Weekly Option Strategy: Iron Condor
Possible adjustments: Shift Call spread to 300 points lower level after a successful breakdown from 29400. Shift Put spread to 300 points higher level after a successful breakout from 30550.
Much Check this also- 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
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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
8+ Years working as a derivative trader, Option Writer, Blogger, Trader by passion, Keen Follower of Indian share market