Nifty and Bank Nifty weekly analysis with Option strategy for 23rd APR Exp

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Successful trading is all about hitting the right paddle with proper predefined rules. But how can we make these predefined rules for our trading plan? What are the do’s and don’t we need to follow to create a profitable trading plan for us? In my bank nifty weekly analysis post, I’m trying to share what I have learned and implemented to achieve my desirable return from any type of market. Read this post until the end to understand further.

When we are talking about “Trading plan“, we have to work on 3 important aspects:

  1. Trading Capital
  2. Risk per trade
  3. Position sizing

Let’s Start with Trading Capital. If you are a beginner and just started your trading career, I recommend you should deploy only that much of capital that you can effort to lose. Why I’m saying this?

Because when you start, You have to learn so many things to be a successful trader. It not a one day or one-week game that you just learn a strategy from a youtube video and the next moment you will start earning.

Successful trading required lots of discipline, patience, and dedication. You can’t learn all these things by reading blogs or watching videos.
You have to get into the field. Have to break your hands in the mud. Then only you will get that experience. So always keep yourself ready to give something first to get your desirable achievements in return.

One more reason is When you in a learning phase and you know you will definitely do some mistakes, so You should be ready to pay the price for that mistake. That price will help to be a successful trader and will open a new path for your successful trading.

If you are an intermediate trader, your capital for one trade should not be more than 20% of the total capital you have.

Second Thing is “Risk per trade“. If you want to survive in this market, your risk per trade should not be more than 2-3% of your total deployed capital. For example, if I have a capital of 2 Lakh than my risk per trade should not be more than 4000₹ – 6000₹. If you are following this rule, you can stay for a longer time.

The third thing is “Position sizing”. Position sizing reflects a number of quantities you should have for one trade. Your risk per trade decides your position sizing. For example, if my risk per trade is 4000₹ that means if stop loss hit my loss should not be more than 4000₹. Let us understand this with one more example. Let’s say a stock is trading at 320, stop loss is 280 and risk per trade is 4000₹. So our position sizing should be 4000/ (320 – 280) = 4000/ 40 = 100 quantities.

We should take only 100 quantities to keep my loss at 4000₹. This is the simple calculation and you must do this calculation before entre in any trade.

I hope now you understand what are the 3 important steps you need to follow to be a successful trader. Believe me, you have to adopt these steps in your trading activity. You can keep it from starting or lose some money and then start working on it. but ultimately you have to adopt these 3 steps.

I too lost some money in starting and then I finally started with option hedging strategies. These hedging strategies are helping to keep my risk on the lower side and keep myself calm without any worry about what will happen to the market tomorrow. Now I can manage my trade with more discipline and patience. You can visit below for more details.

Nifty Weekly analysis with Options strategy

Nifty Chart today

This whole week nifty was traded between the range of 8800 – 9400. As you can see 8950 to 9650 is the no trade zone. A breakout or breakdown will lead to further levels.

I suggest we should wait till nifty is closing and sustaining below 8900. Then only we should initiate a short trade for short term.

For weekly proceptive, current week’s range( 8821.90 – 9324) can be trigger points for a long or short trade. Means if you get a breakdown from 8821.90 go short and if you get a breakout from 9324, go long.

This range breakout strategy works well in a trending market but will give you whipsaws in a sideways market. So always follow your risk management rules.

Nifty weekly Options Chain analysis

 nifty weekly option chain analysis

Based on option chain data, the highest Open interest stands at 9500 CE & 9000 PE, followed by 10000 CE & 8500 PE. PCR of all strikes is 0.84, which indicates a neutral. PCR at 9000 stands at 2.31, which is acting as an immediate support level.

The Put-call ratio at 9500 stands at 0.08, which is acting as a resistance level. Equally, important indicator Option Pain is at 9150, indicating weekly expiry at 9150. A shift in option pain will provide further levels of expiry. So keep tracking max pain.

Significant open interest buildup on both the side, which indicates that the market is facing support from both the side. 

Keep tracking open interest to analyze market participant’s behavior. If you don’t know how to analyze open interest for weekly option hedging strategies. Just enroll for our Option Strategies – A Mentorship Program.

Nifty weekly Options Strategy: Iron Condor

Best nifty weekly option strategy

Possible adjustments:

Initially, you can keep a stop loss of 9400 & 8800 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 8800 then square off 9300 CE & 9500 CE in profit, and short 9000 CE and buy 9200 CE.

The same thing you can do with put spread means if you got a breakout from 9400. 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).

BankNifty Weekly Analysis with options strategy

Bank nifty weekly chart

In the last bank nifty weekly analysis post, I have shared that We saw a sharp correction in Bank Nifty. Banknifty broke its major support zone (23000 – 20700) made a new 3-year low. Now 23000 – 20700 is acting as the strong resistance zone.

A breakout from 23000 will give us a new buy signal to go long. We can expect some sideways movement till bank nifty is trading between 20700 to 18000.

On the downside, the Next crucial support level is 17500. A breakout from 17500 will lead to 13500. 13500 looks scary and I feel Bank nifty should sustain around current levels, but nowadays sentiments are totally weak so it’s too early to say anything.

So better trade with proper hedge and keep your positions with limited risk on both sides.

Bank Nifty Weekly options chain analysis

banknifty weekly oi analysis

Based on option chain data, the highest Open interest stands at 21000 CE & 19000 PE, followed by 20000 CE & 18000 PE. PCR of all strikes is 0.89, which indicates a neutral market. PCR at 19000 stands at 4.81, which is acting as an immediate support level.

The Put-call ratio at 21000 stands at 0.05, which is acting as a resistance level. Equally, important indicator Option Pain is at 2000, indicating weekly expiry at 19500. A shift in option pain will provide further levels.

Remember one thing: When IV is high, data can change anytime so keep following more closely.

If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.

Bank Nifty best Weekly Options Strategy: Iron Condor

BankNifty best option strategy

Possible adjustments:

If you find that BankNifty gives a breakdown and sustaining below 18700, 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 21200. You can shift your put spread to 1000 points up.

If you want to learn these Weekly expiry option 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 the Nifty and Bank Nifty Weekly analysis with options hedging 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 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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8+ Years working as a derivative trader, Option Writer, Blogger, Trader by passion, Keen Follower of Indian share market

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