Technical Analysis and 3 Strategies to deploy for Aggressive, Moderate, and Conservative Traders.

๐ŸงตWeekly Bank Nifty Analysis for 6th Jan Expiry:

To form a view, let's have a look at:

1. Multi-timeframe Technical Analysis
2. Option Chain Data

Also, 3 strategies to deploy for:
1. Aggressive Traders (1.85%)
2. Moderate Risk Traders (1.2%)
3. Low-Risk Traders (0.75%)
1. Technicals

Let's start with technicals. We'll look at:

โ€ข Weekly charts
โ€ข Daily charts.
โ€ข Hourly / 60 min charts.
โ€ข 15 min charts.
1. Weekly-

โ€ข The past 2 weeks indicate that buyers have entered and are trying to lift the market up.

โ€ข 34000 was a strong support earlier too, this should hold for this week at least.
2. Daily:

โ€ข If we open flat or gap up on Monday I am expecting this to play out.
(See picture)

โ€ข If gap down happens, then the traders who are long would be in a slight panic and we need to observe the price action again after a couple of days for a broader view.
3. Hourly

โ€ข Since the market broke the last Lower High (LH), our positions should have a bullish bias.

โ€ข Traders would keep the last pivot of 34750 as a stop loss for their positions.
Option chain data:

โ€ข At nearer strikes put sellers are selling more than call sellers.

โ€ข If this continues for another day, can start selling puts 34500 and below.
Strategies to deploy?

1. Aggressive Traders

Can sell strangles of 34100 puts and 36600 calls & manage.

ROI is around 1.85%
2. Moderate Risk Traders

Can sell strangles of 33700 puts and 36800 calls & manage.

ROI is approximately 1.2%.
3. Conservative Traders

Can sell strangles of 33300 and 37100. Fetches you approximately 0.75% ROI.

You guys should be targeting 2% per month and playing far away from spot levels of BNF.

4 expires per month to make 0.50%.
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Happy learning to everyone!

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Simple and effective way 2 make Money


Idea 1:- Use pivot level like 14800 in case of nifty and sell 14800straddle monthly expiry (365+335) exit if nifty closes on daily basis below S1 or above R1

After closing below S1 if it closes above S1 next day or any day enter the same position again vice versa for R1

Idea2:- Use R1 and S1 corresponding strikes multiple
Incase of R1 15337 take 15300ce
N in case of S1 14221 use 14200pe
Sell both and hold till expiry or exit if nifty closes below S1 or above R1 around closing
If the same bounces above S1 and falls below R1 re-enfer same strikes

Use same criteria for nifty, usdinr and banknifty

(This is must)Use this margin rule for 1lot banknifty pair keep 4Lax margin
For nifty one lot keep 3Lax
For usdinr 100lots keep 4Lax

I bet you if you do this on consistent basis your ROI will be more than 70% on yearly basis.

Couldn't explain easier than this

Criticisms are most welcomed.
A THREAD ON @SarangSood

Decoded his way of analysis/logics for everyone to easily understand.

Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen

1. Keeps following volatility super closely.

Makes 7-8 different strategies to give him a sense of what's going on.

Whichever gives highest profit he trades in.


2. Theta falls when market moves.
Falls where market is headed towards not on our original position.


3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result

He believes in a market operator, if market mover sells volatility Sarang Sir joins him.


4. Theta decay vs Fall in vega

Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.

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