Hey Folks! I hope you are safe and health in this COVID-19 pandemic. In this weekly analysis with options strategies article, I’m sharing my view based on the chart and option chain analysis for Nifty and BankNifty. Along with the weekly analysis, I’m sharing weekly options strategies of Nifty and BankNifty for the coming weekly analysis.
In this weekly newsletter, I’m sharing some valuable tips one can follow to be a more disciplined trader. As you know, Patience and Discipline are the two most important things in successful trading.
These two come when you know what you are doing? Why you are doing? And how you will react when things go against you? So before you start trading with your hard-earned money, I suggest you should try to find the answers to these questions first.
As we are entering the expiry week and it’s almost one month we are trading continuously, I want to take a pause today so that we can look back a little to analyze what we have done in this whole month. It will help to make a better trading plan for the coming month.
Today, I’m sharing the link of my weekly newsletters. Go and read the articles I’m sharing every week. These articles will surely help to make some better trading plan for coming month. Try to find the answers of your question and still you have any doubt, ask me in the comment box. I will love to solve all your queries.
- Click here to real previous weekly newsletters – Replete Weekly
- Trading Psychology: 10 Biases to Avoid!
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Nifty Weekly analysis with options strategies
As I have shared on the last weekly analysis with Options strategies post that 11450 – 11500 is the crucial level that will decide further movement in Nifty.
Nifty gave a breakout from this zone but due to some profit booking, we saw some correction from a higher level. This week again we saw that Nifty is trying to sustain above this zone. A sustainable breakout will give us some further Upside levels and our next target can be 12000 & 12400.
On the downside, 11000 is playing a psychological support level. A breakdown will give us some more downside levels. So the weekly range can be 11200 – 11800 for the coming monthly expiry.
Few people are asking that you are sharing only the range but not the direction. Why you are not sharing whether nifty will go UP or it will go down in the coming week. One thing I want to share here, I believe in reacting not in predicting. I’m not bothered about where nifty will go. Wherever it goes I will follow.
That’s the reason, I’m trading only the range, not the direction. Because I don’t need to do anything until Nifty is trading in my range and if it gives me a breakout or breakdown I can adjust my position accordingly.
Why waste my time to predict first and then wait to see that m I right or wrong when I can easily trade based on the current data and range? You can see a lot of messages on social media that Nifty will hit this or that. I’m saying let it hit this or that first, we can react based on that later.
You can see 70% times market consolidate in a range that means 70% accuracy market itself is giving to me, for rest 30% we can do the adjustments. What do you say? Isn’t it a better approach? After all, we are here to make money not to be a better predictor.
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Nifty Weekly analysis based on Option chain data
Based on option chain data, the highest Open interest stands at 11600 CE & 11500 PE, followed by 12000 CE & 11000 PE. PCR of all strikes is 1.11, which indicates a neutral market. PCR at 11300 stands at 6.06, which is acting as an immediate support level.
The Put-call ratio at 11700 stands at 0.22, which is acting as a resistance level. Equally, important indicator Option Pain is at 11500, indicating weekly expiry at 11500. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on both sides. Indicating a range-bound activity only. So based on the OI, the possible range for this week should be 11300 – 11700.
Keep tracking change in 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 fo find best option trading strategy in nifty and bank nifty. Just enroll for our Option Strategies – A Mentorship Program.
Nifty weekly options Strategy: Iron Condor
Initially, you can keep a stop loss of 11350 & 11750 for this strategy. Means square off if you find nifty is giving a breakout or breakdown. Or you can do this adjustment too. ( Do not hold this strategy is loss is more than 1500₹).
If you find that Nifty is giving a breakdown and sustaining below 11350, 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 11750. You can shift your put spread to 300 points up.
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Banknifty Weekly analysis with banknifty options strategy
You can see Banknifty is trading in tight range if 21000 – 23200. We got a breakout from 23200 but later again banknifty came back in its previous range. Now we can’t expect any further levels until Bank Nifty is trading in this range.
So based on the current chart setup, range should be 21000 – 23200 until there is no fresh breakout or breakdown. So follow this range to make some range-bound strategies.
BankNifty weekly analysis based on the option chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 23000 CE & 22000 PE, followed by 22500 CE & 22500 PE. PCR of all strikes is 0.75, which indicates a neutral zone. PCR at 22000 stands at 3.95, which is acting as an immediate support level.
The Put-call ratio at 23000 stands at 0.21, which is acting as a resistance level. Equally, important indicator Option Pain is at 22500, indicating weekly expiry at 22500. A shift in option pain will provide further levels.
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BankNifty option Strategy: Iron Condor
Possible adjustments for this best banknifty option strategy are:
If you find that BankNifty gives a breakdown and sustaining below 21700, 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 23100. You can shift your put spread to 800 points up.
If you want to learn this banknifty option strategy and its adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(33% OFF).
Post your comments in the comment box if you have a query related to the weekly analysis and Best Nifty and BankNifty option Strategy. 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 or the weekly analysis with nifty and banknifty 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.