Weekly Analysis Options Strategy For 30th Aug – 6th Sep 2019

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Hello guys, I hope you are doing good in your trading. Last week in my weekly analysis options strategy post I shared that the market is in the grip of bear completely.

Even after some good announcement by our Finance Minister Smt Nirmala Sitharaman, Market is not showing any recovery. People were expecting that after the removal of FPI surcharge, the market will cross 12000 but FPI surcharge is not a single reason.

There are many factors, globally as well as domestic, which are playing their role. like the slowdown in consumption growth, Results were not that good, most of the sectors struggling for some good numbers except IT Sector, which may get some good numbers with strength in USD-INR.

On technical charts. after a long time, we broke technically support levels, which indicates that we’ll spend some more time below these levels now.

In the below chart I try to analyse what can we expect based on technically. Let’s take a look

Nifty – Weekly Analysis options strategy:

Nifty Chart 29th AUG

After giving a breakdown from 11100, We saw a good downside movement in Nifty. Although nifty had tried twice to recover from lower levels but failed to close above 11200. Now 11150 – 11200 is acting a strong resistance zone which needs to break for some upside levels.

Right now nifty is in SELL-ON-RISE mode and we should look a sell opportunity if we get some recovery until nifty is not manage to sustain above that 11200 levels.

On downside 10650-10600 is acting as a strong support zone. If we get a breakdown from 10600, then more downside levels will open. 10500 is still a very strong and crucial level and personally, I’m not expecting a downside from this level but,

As we all know the market is supreme, so we have to keep our positions with the proper hedge. Keep buying good scripts on every fall.

Open Interest analysis

Nifty Open Interest analysis
Source – sensibull

Based on option chain data, the highest Open interest stands at 11000 CE & 10900 PE, followed by 11100 CE & 11000 PE. PCR of all strikes is 0.61, which indicates an oversold market. PCR at 10800 stands at 2.42, which is acting as an immediate support level, PCR at 11000 stands at 0.56, which is acting as a resistance level. Equally, important indicator Option Pain is at 11000, indicating weekly expiry at 11000. A shift in option pain will provide further levels.

We can see there is huge open interest buildup on the Call side which indicates that the market is facing huge pressure on the upside. The trend is Down. So act accordingly

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

Nifty Options Strategy: Bull Call Ladder

Nifty Bull Call Ladder(30th Aug)

Possible adjustments: As you can see this is an unlimited risk strategy on the upper side. so take this strategy only if you can manage actively. As soon as Nifty hit 11000 you can shift 11000 to 11100. Same you have to do with 11050. Nifty hit 11050, shift 11050 to 11150 and hold.

Banknifty chart – Weekly analysis:

Bank nifty Chart 29th aug (Weekly Analysis)

Same thing we can see in Banknifty. After gave a breakdown from 28500, we saw a sharp decline in the index.

Now 28200 – 28500, which is a 38.2% Fibonacci retracement levels, is acting as a strong resistance zone which looks difficult to break as per current setup in Banknifty.

on the downside, 26600 – 26400 is acting as a strong support zone. Banknifty will trade in this range of 2000 points until bank nifty is holding 26500 & 28500.

BankNifty Open Interest Analysis:

BankNifty Open Interest Analysis

Based on option chain data, the highest open interest stands at 28000 CE & 27000 PE followed by 27500 CE & 26500 PE. PCR of all strikes stands at 0.55, which indicates an oversold market. Individual PCR at 27000 stands at 5.3, which is acting an immediate support zone. PCR at 27500 stands at 0.44, which is acting as an immediate resistance zone. Option pain stands at 27400, giving us expiry level. Keep tracking this option pain level. A shift in option pain will provide a new standard for expiry.

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

Bank Nifty options strategy: Bull Call ladder spread

Bank Nifty options strategy

Possible adjustments: As you can see this is an unlimited risk strategy on the upper side. so take this strategy only if you can manage actively. As soon as Bank Nifty hit 27500 you can shift 27400 to 27800. Same you have to do with 27600. Bank Nifty hit 27700, shift 27600 to 28000 and hold.


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

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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

2 thoughts on “Weekly Analysis Options Strategy For 30th Aug – 6th Sep 2019”

    • If you know, how to manage your trade and what should be your adjustments if script starts moving against your prediction, no need to be right 90% time.

      Profit comes, how you manage your trade, not from the right predictions.

      Reply

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