Nifty & BankNifty Weekly Analysis with Options strategy for 30th Dec Exp

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Hello guys, I hope you are safe and healthy in this Covid-19 pandemic. In this weekly analysis with options strategy post, I’m trying to share what range we can consider before initiating a weekly options strategy for the last week of 2021.

This is my last weekly post of 2021. And I’m highly obliged for the love you gave me this entire 2021 year. This was the best year for me. I have learned so many new things from you all. Achieve some goals and be motivated to do something better in the coming 2022.

This year, I have tried to share so many valuable things that I believe you should follow these things if you want to be a successful trader in this market. So before we go further I suggest, you should check my previous weekly articles. Here is the link: Replete Bell Weekly

Now, let’s come to our weekly analysis. We saw a huge decline in both the indices in the last few weeks. In fact, We can see selling in all the sectors. The banking sector is at the top looser this week.

FIIs are net sellers from the last few months and sold more than 5875cr in the Cash market this week, which is a bad sign for short-term trends.

As I shared earlier, the overall trend is down, and every upside should be a selling opportunity in this market. Stay away from a long trade for time being. Always follow your risk management rules.

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Nifty weekly analysis with options strategy

Nifty chart this week

After a gap-down opening and making a low of 16410.20, We saw some recovery in NIFTY that push Nifty till 17145. Last week I have shared that 16700 – 17050 is a reversal zone and a breakdown from 16700 will lead to the next downside target of 16000.

This week, Nifty was trying to save that 16700 level but 17000 – 17050 is acting as a resistance zone (Which was the support zone previously).

Right now Nifty is in the no-trade zone and any position either long or short will give you a loss because the market is totally unpredictable right now. So better trade with range-bound strategies or stay away from the market if you don’t know how to capture quick movements.

As per my analysis, we should wait for a sustainable breakdown from 16700 for a fresh short position and a sustainable breakout from 17500 for a long position. This 16700 – 17500 zone is highly risky.

If you want to trade here: trade with limited risk, range-bound strategies only. And keep your range a little wide to absorb this highly volatile movement in the market.

Next week is the monthly expiry too, so trade with caution and keep yourself safe.

Nifty Option Chain analysis

Nifty option chain analysis

Based on option chain data, the highest Open interest stands at 18000 CE & 17000 PE, followed by 17500 CE & 16500 PE. PCR of all strikes is 0.9, which indicates a neutral market. PCR at 16500 stands at 7.53, which is acting as an immediate support level.

The Put-call ratio at 17500 stands at 0.27, which is acting as a resistance level. Equally, important indicator Option Pain is at 17000, indicating weekly expiry at 17000. A shift in option pain will provide further levels.

Significant open interest buildup on both sides indicates a range-bound activity in the coming week. Based on Option chain data, 17000 & 16500 are the support levels & 17500 & 18000 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

Nifty Weekly Options Strategy

Possible adjustments:

Initially, you can keep a stop loss of 16750 & 17250 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 16750, 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 17250. 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(60% OFF).

Banknifty Weekly analysis with options strategy

banknifty chart today

The almost same setup appears in BankNifty also. Took support in the reversal zone ( 50% – 60%) and now waiting for a breakdown or a breakout for a fresh short or long trade.

Based on the Fibonacci extension tool, 38000 is acting as the 23.6% level that is acting as a resistance level for a fresh buy trade. So you should initiate a long trade only above 38000.

On the downside, 34800 is the support level and a breakdown will initiate a new sell trade for further upside levels. Although banknifty gave a breakdown on Monday but couldn’t sustain below 34800. So wait for a sustainable breakdown for a fresh short trade here.

So based on the chart, 34800 & 38000 are the two levels you should keep on the radar.

34800 is very crucial in terms of sentiments. A breakout will attract more negative sentiments, and we may see some more downside levels here.

This is the best time to think about hedging. Protection of your portfolios is more important than anything else right now.

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Bank Nifty option chain analysis

banknifty option chain analysis

Based on option chain data, the highest Open interest stands at 35000 CE & 35000 PE, followed by 36000 CE & 34000 PE. PCR of all strikes is 0.9, which indicates a neutral market. PCR at 34500 stands at 4.34, which is acting as an immediate support level.

The Put-call ratio at 35500 stands at 0.26, which is acting as a resistance level. Equally, the important indicator Option Pain is at 35000, indicating weekly expiry at 35000. 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

banknifty weekly options strategy

Because of the few trading sessions in the coming week, the premium is very low. We are not getting that much of premium. So better take a low-risk strategy. We will square off this strategy if banknifty gives a breakout or breakdown from 35700 – 34200.

To learn the advanced adjustments, 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 with options strategy. You can ask any question related to options trading in the comment box.

If you need More real-time assistance on the Nifty and Banknifty weekly analysis with options strategy Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on these weekly options strategies. You can contact us on WhatsApp.


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DISCLAIMER: – we are not a SEBI research analyst. Views posted in this Weekly Analysis with Options strategy article 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.

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Sachin Sival is the founder and CEO of Replete Equities, an options trading company that specializes in delta hedging. A self-taught trader, Sachin has a passion for volatility trading and stock trading. Sachin loves to hone his skills by reading up on new strategies and techniques as well as taking part in industry events. In addition to being a successful entrepreneur, Sachin also takes pleasure in photography - as a hobby.

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