Thread by @AdityaTodmal

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

🧵Weekly 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:

• Weekly charts
• Daily charts.
• Hourly / 60 min charts.
• 15 min charts.

1. Weekly-

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

• 34000 was a strong support earlier too, this should hold for this week at least.

2. Daily:

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

• 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

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

• Traders would keep the last pivot of 34750 as a stop loss for their positions.

Option chain data:

• At nearer strikes put sellers are selling more than call sellers.

• 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!