Weekly Market Update with weekly options strategies for 18th Feb Exp

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Hey folks! I hope you are doing good. We saw a sharp upside rally in the market after the budget session. In this weekly market update, we will try to analyze the trend of two major indices.

In this weekly post, I will also share the nifty and bank nifty weekly options strategies. So please read this post till the end to know the strategies and their adjustments.

After made an all-time high two weeks ago, we saw a sharp decline due to week global sentiments and profit booking on the higher levels. But the budget session brings joy again, and we saw a sharp upside rally in both the indices and made a new all-time high last week. This rally continues this week, too, and we saw a new high this week.

FIIs were the net buyer again and bought around 6000 cr in the last 4 trading sessions, which indicates a positive sign for the coming week.

Nifty and BankNifty both made a new all-time high, and both the indices are in the complete UP Trend. So do not take any contra trade here. Every decline should be treat as a buy-on-dips opportunity. For support and resistance for the coming week, read the next section.

Contents

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Nifty weekly market update

Nifty chart today

We can see that Nifty is trading at an all-time high. Last week I shared that if Nifty holds 14800, we can see 15196 & 15577 as the next targets for the long trade in nifty. This week Nifty hit its first target i.e. 15196 and now trading around its all-time high.

Now based on the chart, 14800 is acting as the immediate support level and 15577 is acting as the immediate resistance level.

As I have shared in my last weekly market update that 14050 was acting as the immediate support level, and a breakdown will lead to 13570. Although we got that breakdown, and Nifty was heading towards our downside target of 13570. But the budget day brings new joy, and now the market is going up and up only.

So again I’m saying that don’t take a contra trade here. Follow the trend and follow buy-on-dips strategy with every fall.

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Nifty weekly market update based on option chain data

Based on option chain data, the highest Open interest stands at 15200 CE & 15000 PE, followed by 15500 CE & 15100 PE. PCR of all strikes is 1.05, which indicates a neutral market. PCR at 15000 stands at 4.32, which is acting as an immediate support level.

The Put-call ratio at 15500 stands at 0.03, which is acting as a resistance level. Equally, an important indicator, i.e., Option Pain, is at 15150, indicating weekly expiry at 15150. A shift in option pain will provide further levels.

On both sides, significant open interest buildup indicates that nifty is facing support from both sides and expecting range-bound activity with a bullish trend in the coming week. Based on Option chain data, 15000 & 14800 are the support levels & 15300 & 15500 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

best nifty weekly option strategy

Possible adjustments:

Initially, you can keep a stop loss of 14950 & 15450 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 14950, 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 15450. 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 Market Update: Bank Nifty

banknifty chart today

After made an all-time high on 05th February 2021, we saw Banknifty was trading in a range this week. This week BankNifty made alow of 35428.15 and trading in the range of 36615.20 to 35428.15.

Now, if this rally continues, 37420 & 39500 are the next targets for the coming session. On the downside, 28000 is acting as the immediate support level for this upside rally.

I want to share one more thing, the medium to long term trend is UP, so any decline till 28000 should act as a Buy-on-dips opportunity. A breakdown from 28000 will change the trend. So act accordingly.

Bank Nifty weekly market update based on option chain data

banknifty open interest chart

Based on option chain data, the highest Open interest stands at 36000 CE & 35500 PE, followed by 36500 CE & 35000 PE. PCR of all strikes is 1.05, which indicates a neutral market. PCR at 35500 stands at 7.95, which is acting as an immediate support level.

The Put-call ratio at 36500 stands at 0.04, which is acting as a resistance level. Equally, important indicator Option Pain is at 35800, indicating weekly expiry at 35800. A shift in option pain will provide further expiry 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

Bank Nifty Weekly Option Strategy

Possible adjustments:

If you find that BankNifty gives a breakdown and sustaining below 35150, 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 36850. You can shift your put spread to 1000 points up.

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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 SessionA low-risk options strategy in LICHSGFINAn iron condor options strategy in ICICIBANKReverse Jade Lizard options strategy in UPLA high probability options strategy in YESBANK

Post your comments in the comment box if you have a query related to weekly market update and options strategies. You can ask any question related to option trading in the comment box.

If you need More real-time assistance on Nifty and Bank nifty weekly market update and options strategies 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

*( 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 market update, 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.

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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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