Weekly Analysis with Nifty & BankNifty weekly Option strategy for 25th JUN

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Successful trading is not just placing the right trade but how well you are managing emotions will create a real difference in your trading and will give you your reward. In this weekly article, I will share how to trade management is important along with the Nifty and Banknifty weekly option strategy. Read this post till the end to know in detail.

Why “manage your emotions” is essential? Let us assume there are two traders, Ramesh and Suresh, trading in the same segment, in the same script, and the same instrument. Let’s say both are trading in the BankNifty weekly option and placing the same trade with the same rates.

Now’s every day, when they analyze the Outcome of their trades, they find that Outcome is different, even after they took the same trade, and market behavior is also the same. So why the Outcome is different?

Because there is a change in the behaviour of both the traders, where Ramesh is more disciplined and keeping yourself calm in every situation, Suresh is not that emotionally stable. Suresh starts panicking even there is a small unexpected movement.

This is not just the Suresh’s problem; somewhere we all are facing the same. To control your emotions in trading is the biggest challenge for everyone. If you can manage your feelings, You will have won the half battle. But how can we control our emotions?

To get the answer to this situation, first, we have to understand why emotions trap us? As per my knowledge and experience, every time we are playing with that risk which we can’t effort to lose will create an emotional trap for us.

Let us understand this with an example. You have created a strategy or took a trade where risk is around 10000₹ but your capital is just 40000₹ and you can’t effort to lose that 10000₹ in a single trade Now, whenever you see your account in big red you start to panic.

You start to calculate things again in the middle of the trade and this time your emotions are also there, and most probably you will make a decision based on the emotions not from the analysis you are following. That’s true we all are facing the same. We always regret a decision which comes from emotions, especially in trading.

Believe me, I too faced the same problems in my trading. I did some research, entred in a trade and then took a decision in the middle of that trade to close it. Later I realise that my analysis was right but due to some emotional trap I missed a good trade.

The best solution to this problem is; Calculate everything before entre in a trade. Imagine the worst situations you will face during that trade. How will you react to the situation, that plan should be ready before entre in any trade? How much max risk you are keeping in that trade? Can your effort to lose that money? After you close this trade in loss, can you take the next trade as freely as you are taking this trade? As all these questions to yourself before entre in a trade.

When you ask these questions to yourself, you will get a clear picture of what you are going to do. The next question is; What steps you are following to keep that risk on the limited side?

You can easily manage that risk in Intraday. You can follow stop loss but when we are dealing with positional positions, keeping risk on a limited side is a touch deal especially if you are keeping a naked position in your portfolio. One bad trade can wipe out your entire account.

That’s the reason I have shifted to these limited risk options strategies. These options strategies not only help to keep your risk on a limited side but will help to generate some consistent return without any worry about where the market will be after 30 days.

These strategies will help to keep yourself calm in every situation because you know how much max you can loose in any worst condition. This will help to manage your emotions well and if you can manage your emotions well, you will get good rewards too.

If you are happy with some less return but need stress-free trading, you should start trading with these limited risk options strategies. Nowadays Internet is full of resources, where you can learn. We too have an Option Strategies – A Mentorship Program, Where I’m sharing my knowledge and experience and helping our students to trade in a more disciplined way.

Nifty Weekly analysis with Weekly Option strategy

Nifty chart today

I have shared in my last weekly analysis post that Nifty is trading in a range, and 10300 – 9500 is the range we can expect in the coming week. Nifty was trading in the same range.

If you look at the chart, you will find that 10000 is playing as an important psychological level for the short to medium-term trend. Nifty started this week below this psychological level but we saw a good recovering in the last 2 trading sessions.

In the above chart, I draw a trendline on the higher-highs which indicates that Nifty is trying to change its trend from DOWN to UP. You can use this trendline as a reference point and Any breakout from lower level will generate a sell signal for further downside levels.

On the Upside, 10300 – 10500 is the strong resistance zone and a breakout will generate a new BUY signal for the nest target of 11200/11300.

As per chart, 10500 – 9500 is the range we can expect until we will not get any breakout or breakout from this range. Let’s look at the Option Chain data.

Nifty Weekly Option Chain analysis

Based on option chain data, the highest Open interest stands at 10500 CE & 9000 PE, followed by 11000 CE & 9500 PE. PCR of all strikes is 1.37, which indicates an overbought market. PCR at 9500 stands at 4.95, which is acting as an immediate support level.

The Put-call ratio at 10500 stands at 0.16, which is acting as a resistance level. Equally, important indicator Option Pain is at 10000, indicating weekly expiry at 10000. A shift in option pain will provide further levels of expiry. So keep tracking max pain.

Significant open interest buildup on both sides from 9500 to 10500. Indicating that Nifty is facing good support around 9500 levels and resistance around 10500 levels. So based on the OI, the possible range for this week should be 9500 – 10000.

Keep tracking 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 for weekly option hedging strategies. Just enroll for our Option Strategies – A Mentorship Program.

Nifty weekly Option Strategy: Iron Condor

nifty weekly option strategy

Possible adjustments:

Initially, you can keep a stop loss of 9850 & 10450 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 9850, 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 10450. You can shift your put spread to 300 points up.

If you want to learn these Nifty and BankNifty weekly option 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 BankNifty weekly option strategy

Banknifty weekly technical chart analysis

Banknifty is trading near it its strong resistance zone. 21700 – 22500 is the resiatance zone and a breakout will lead to further upside levels. As per Fibonacci retracement tool, next levels should be 24300 – 25500 after a successfull breakout from the resistance zone.

Right now, Banknifty is trading in no trade zone and we can expect some range-bound activity until we are not getting any breakout from 22500.

On the downside, 20000 is acting as an strong support level. A breakout from 20000 will lead to next support level at 18000.

As per the current chart, the range for this week should be 20000 – 22500. You can create a strategy based on this range.

BankNifty weekly option chain analysis

Banknifty Weekly option chain analysis

Based on Bank nifty option chain data, the highest Open interest stands at 22000 CE & 20000 PE, followed by 22500 CE & 19000 PE. PCR of all strikes is 1.16, which indicates a neutral market. PCR at 20000 stands at 3.89, which is acting as an immediate support level.

The Put-call ratio at 22000 stands at 0.08, which is acting as a resistance level. Equally, important indicator Option Pain is at 21000, indicating weekly expiry at 21000. 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 do the banknifty weekly option chain analysis, Just enroll for our Option Strategies – A Mentorship Program.

BankNifty Option Strategy: Iron Condor

Banknifty weekly option strategy

Possible adjustments:

If you find that BankNifty gives a breakdown and sustaining below 19900, then Shift your Call spread to 800 points down.

The same thing you can do with put spread means if you got a breakout from 22000. You can shift your put spread to 800 points up.

If you want to learn these banknifty weekly option strategy 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– 

Post your comments in the comment box if you have a query related to the Nifty and BankNifty weekly option strategy. You can ask any question related to option trading in the comment box.

If you need More real-time assistance on Nifty and Banknifty weekly option strategies, Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on these nifty and BankNifty weekly option 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. Views or the nifty and banknifty weekly 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.

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