Technical Analysis and 3 Strategies to deploy for Aggressive, Moderate, and Conservative Traders.
🧵 Weekly Bank Nifty Analysis for 2nd March Expiry:
🧵 Weekly Bank Nifty Analysis for 2nd March Expiry:
You'll learn multi-timeframe technical analysis for the current week from this thread.
Also, there are 3 strategies one may deploy according to their risk appetite:
1. Aggressive Traders (1.5%)
2. Moderate Risk Traders (1%)
3. Low-Risk Traders (0.65%)
Also, there are 3 strategies one may deploy according to their risk appetite:
1. Aggressive Traders (1.5%)
2. Moderate Risk Traders (1%)
3. Low-Risk Traders (0.65%)
1. Technicals
Let's start with the technicals. We'll look at:
• Weekly charts
• Daily charts
• Hourly/60 min charts
• 15 min charts
Let's start with the technicals. We'll look at:
• Weekly charts
• Daily charts
• Hourly/60 min charts
• 15 min charts
1. Weekly-
• Very Bad closing on a weekly basis
• Current week was a trending week.
What to expect post-trending week?
Consolidation or sideways maybe as we are still above Budget day low.
• Bulls will only be in control above 42000 now on the weekly timeframe.
• Very Bad closing on a weekly basis
• Current week was a trending week.
What to expect post-trending week?
Consolidation or sideways maybe as we are still above Budget day low.
• Bulls will only be in control above 42000 now on the weekly timeframe.
2. Daily:
Currently what happened?
5-6 Red candles in a row followed by a hammer candle. But a hammer candle always needs a confirmation candle which we haven't got.
• Closing above 40500 bulls will be under some control. A small bounce is expected due to constant selling.
Currently what happened?
5-6 Red candles in a row followed by a hammer candle. But a hammer candle always needs a confirmation candle which we haven't got.
• Closing above 40500 bulls will be under some control. A small bounce is expected due to constant selling.
3. Hourly
• We are at a zone from where usually bulls are coming in control.
• Until we are trading below Friday's day high I will look to sell calls only.
• No higher high, will get one only above 40350, so that's when I will look for selling puts.
• We are at a zone from where usually bulls are coming in control.
• Until we are trading below Friday's day high I will look to sell calls only.
• No higher high, will get one only above 40350, so that's when I will look for selling puts.
4. 15 mins
• Market opened above yesterday's high so traders must have gone long.
Whenever traders go long above PDH their SL is PDL.
So below 39600 expecting a further downmove.
• R:R isn't good enough for sellers so they should wait for a bounce to sell.
• Market opened above yesterday's high so traders must have gone long.
Whenever traders go long above PDH their SL is PDL.
So below 39600 expecting a further downmove.
• R:R isn't good enough for sellers so they should wait for a bounce to sell.
Open Interest:
More calls sold than puts means the bias is negative.
However these guys, would be trapped above 40350 so watch out for that level.
Data from @iChartsIndia
More calls sold than puts means the bias is negative.
However these guys, would be trapped above 40350 so watch out for that level.
Data from @iChartsIndia
What strategies to deploy?
1. Aggressive Traders
Aggressively I will only look to sell puts if 40350 level is crossed on the upside.
Will target puts near 39500 strike price. (Expecting around 60-80 rs premium)
This alone should get me around 1.5% returns.
1. Aggressive Traders
Aggressively I will only look to sell puts if 40350 level is crossed on the upside.
Will target puts near 39500 strike price. (Expecting around 60-80 rs premium)
This alone should get me around 1.5% returns.
2. Moderate Risk Traders
Can sell strangles of 38500 puts and 41100 calls & manage them.
Levels to put stops at 39600 on the downside and 41300 on the upside.
The ROI is approximately 1%.
Can sell strangles of 38500 puts and 41100 calls & manage them.
Levels to put stops at 39600 on the downside and 41300 on the upside.
The ROI is approximately 1%.
3. Conservative Traders
Can sell strangles of 41300 CE & 38200 PE.
ROI is approximately 0.65%.
It would be best if you guys were targeting 2% per month and playing far away from spot levels of BNF if you're conservative.
4 expires per month to make 0.50% each week.
Can sell strangles of 41300 CE & 38200 PE.
ROI is approximately 0.65%.
It would be best if you guys were targeting 2% per month and playing far away from spot levels of BNF if you're conservative.
4 expires per month to make 0.50% each week.
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Check out
@niki_poojary 's analysis which she will post before Monday, her's is a bit different from mine each time.
Retweet the first tweet and help others find this.
Check out
@niki_poojary 's analysis which she will post before Monday, her's is a bit different from mine each time.
Retweet the first tweet and help others find this.
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