How to trade Nifty and Nifty Bank in the new weekly series

Markets continue to hold crucial support levels, even after witnessing some profit booking. The sentiment is relentlessly bullish, and every dip is a buying opportunity now.

Nifty weekly expiry option chain witnesses PE writers actively adding their positions of more than a lakh contracts at 18000PE - over lakh contracts, with CE writers' exposure lying at 19000CE - more than a lakh contracts, followed by 18700CE. PCR_OI at 18000 is comfortably above 1, which is the cushion for the bulls going ahead.

Option Strategy recommendation: Since the downside is limited and Index at support one can try:


Weekly expiry BUY 18200CE as Plain Vanilla or can also SELL 18500CE along with this to hedge and create a spread.

Bank Nifty option chain on weekly basis, reflects on PE writers standing tall at 41500 strikes, with CE writers adding exposure at 42000/43000/44000 strikes- more than 40 thousand contracts each, which reflects on the limited downside and huge
upside for the INDEX.

Since the immediate range is far spread, participating in Short Strangle is well suggested.

Weekly expiry: SELL 40900PE and SELL 43200CE. (SL to be maintained as per risk capacity).

P.S: please note, selling options is a high-risk play, so only traders who can understand the risk participate
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Sector Updates:
On a weekly basis metals, Automobile and Infra saw a strong upmove, whereas Textile and Pharma witnessed a downhill.

Stocks Updates:
BUY ESCORTS: CMP 2030, TGT 2129/2162, SL 1970.
BUY SEIMENS : CMP 2930, TGT 3040/3100, SL 2880.

Shilpa Rout, Derivatives Lead Analyst, Prabhudas Lilladher