Nifty Prediction and Weekly Options Strategy for Monday

The Indian stock market, led by the Nifty index, presents dynamic opportunities for traders. This article provides a comprehensive guide for navigating the market this Monday. We'll delve into potential Nifty movements based on current market trends and fundamental analysis.

Furthermore, we'll explore a robust weekly options trading strategy designed to capitalize on market volatility. This strategy incorporates risk management techniques to help you maximize potential returns while minimizing losses.

Whether you're an experienced trader or just starting, this in-depth analysis will equip you with valuable insights to make informed trading decisions this week.

Nifty Prediction based on Chart and Option Chain for Monday

Before we examine the weekly option strategy in depth, we need to analyse the overall trend and important levels of Nifty50.

As I have mentioned in my last nifty analysis post that 23450 is acting as an immediate support and a breakdown can touch the next downside level of 22800.

On Friday, January 10, 2025, Nifty closed below 23450 and made a low of 23047.25 on Monday after a gap-down opening.

This whole week Nifty was trading between the range of 23100 - 23400.

Now if you look at the chart, you can see that after a breakdown from the recent support level i.e. 23450 Nifty is in a complete downtrend. And there is no sign of any recovery.

Now recent low i.e. 23047.25 can be a small hurdle to reach our downside target of 22800.

The overall trend looks bearish. So we should avid any fresh long position here until we are not getting any reversal sign.

Nifty Prediction Based on Option Chain Analysis

At the time I'm writing this article, we can see a huge addition of open interest on the call side from 23200 to 23600, which indicates that overall sentiment looks bearish in Nifty.

Based on PCR data, 23000 is acting as the immediate support because we can see good open interest buildup near this level on the put side.

Looking at OI data, 23000 is acting as immediate support and 23400 is acting as an immediate resistance for the coming week.

Please note: These levels are based on the current data. Please keep tracking changes in OI for further levels in the coming week.

Nifty Weekly Options Strategy for January 23, 2025 Expiry

Below is the weekly option strategy based on the levels, mentioned above.

I'm keeping a very nominal risk for it.

Adjustments for Nifty Weekly Option Strategy

I prefer to keep my trading setup very simple. So as my adjustments too.

If Nifty goes below and I find the premium of our bought Call went below 80%. We will square off the bought call and bring it down to 23300.

Same as for the Put side. This means if Nifty goes up, we will bring out the PE bought for 23100 from 22950.

The idea is to reduce the spread and convert it into a no-loss option strategy.

We watch oi data closely and initiate so more adjustments based on the levels and trend. These adjustments we share in our premium channel.

If you want to learn and get the adjustments on a real-time basis, can upgrade your subscription and join our premium Telegram channel.

Please note: As you know that lot has changed after the weekly removal of other indices. So focusing only on one strategy or indices makes it difficult to make a more stable MTM. So I'm for using on a basket of weekly + Monthly expiries including stocks and Indices.

All the strategies including the adjustments, I'm sharing in my premium channel. You can join through the below link.

Below is the strategy that we shared for January 16, 2025. We converted this strategy into no-loss and booked a nominal profit this week.

We have shared other strategies with real-time adjustments in our premium telegram channel. You can upgrade your subscription by joining this community.

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Disclaimer: This analysis is purely for informational purposes and does not constitute investment advice. Trading involves risk, and you should always conduct your own research and consult with a financial advisor before making any investment decisions.