Hello guys, I hope you are doing good. Every week I’m sharing my weekly expiry analysis with option strategies in Nifty and BankNifty. I hope these Weekly expiry option strategies are helping you to take some better decisions.
1st February on budget day, we saw a huge decline in both the indexes. Both the indexes broker it’s crucial support level but the rally we saw in the last 5 trading session, it indicates that the market is in the complete grip of bulls.
I was following 11800 as the strong support level in Nifty and 30500 in Banknifty. On 1st February, both the indices closed below these levels but came back again at the same pace in its previous range, which is a good sign for short to medium-term trends.
If we look at the FIIs data, Last week FIIs was the net seller in our market this week FIIs was neutral. At the current stage, there is no clear indication of where the market will go in the coming sessions.
I always prefer to react on market instead of predicting things. I will only react once the market gives a Buy or sell signal itself. Before making a decision let us look at charts.
Nifty weekly expiry with option strategies
Nifty broke it’s the crucial support level of 11800 on 1st February 2020 and closed at 11661.85. Later on 3rd and 4th February, we saw a good upside rally which manages to bring back in that range where we start on Budget day.
As per my analysis, 12000 – 11800 is the range where we can follow. A breakout or breakdown will lead to further levels. Right now there is no clear indication.
A long trade we should initiate only above 12300 and if Nifty manages to sustain below 11800 then only we should initiate a short trade. Let us look at the option chain data.
Nifty weekly Options Chain analysis
Based on option chain data, the highest Open interest stands at 12200 CE & 12000 PE, followed by 12100 CE & 12100 PE. PCR of all strikes is 1.09, which indicates a neutral market. PCR at 12000 stands at 3.22, which is acting as an immediate support level.
The Put-call ratio at 12200 stands at 0.18, which is acting as a resistance level. Equally, important indicator Option Pain is at 12100, indicating weekly expiry at 12100. A shift in option pain will provide further levels.
Significant open interest buildup on both sides, Especially 12100 CE, 12150 CE & 12C00 PE, which indicates that the market is expecting to remain in a range only but getting support from lowe levels. Based on Option chain data, 12000, 11900 are good support levels and 12200 & 12300 are good resistance levels for this expiry.
Keep tracking open interest to analyze market participant’s behavior. If you don’t know how to analyze open interest for weekly options strategies. Just enroll for our Option Strategies – A Mentorship Program with a 10% discount which is going to expire on 26th January.
Nifty Options Strategy: Iron Condor
Initially, you can keep a stop loss of 11950 & 12250 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 11950 then square off 12200 CE & 12300 CE in profit, and short 12000 CE and buy 12100 CE.
The same thing you can do with put spread means if you got a breakout from 12250. You can shift your put spread to 200 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.
BankNifty Weekly Analysis with option strategies
After made a low of 29612.55, we saw a huge upside rally in Banknifty and manage to close above 31000. Now here, again 31000 is acting as a crucial level.
On downside 31000 – 30600 is the support zone, Close below this zone will bring new doors to bear. On upside 31900 is acting as a strong resistance level. Close above 31900, the next target will be 32600.
Bank Nifty Weekly option chain analysis
Based on option chain data, the highest Open interest stands at 31500 CE & 31000 PE, followed by 32000 CE & 30500 PE. PCR of all strikes is 1.21, which indicates a slightly overbought market. PCR at 31000 stands at 2.51, which is acting as an immediate support level.
The Put-call ratio at 31500 stands at 0.10, which is acting as a resistance level. Equally, important indicator Option Pain is at 31200, indicating weekly expiry at 31200. A shift in option pain will provide further levels.
If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty Weekly Option Strategy: Iron Condor
If you find that BankNifty gives a breakdown and sustaining below 30800, then Shift your Call spread to 300 points down.
The same thing you can do with put spread means if you got a breakout from 31600. You can shift your put spread to 300 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.
Much Check this also–Nifty Option Strategy for Budget Session, Reverse Jade Lizard options strategy in UPL, Iron Condor in SBIN, Reverse Jade strategy in TCS, Best Option strategy for a sideways movement in PNB, A high probability option strategy in NIITTECH, Iron Condor in SBIN, Why People Lose Money Nifty and Bank nifty index analysis with Option Strategy
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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.