Deploy iron condor strategy in Nifty
The upcoming week can be approached with a low-risk strategy like Iron Condor in Nifty.
Research by Quantsapp Advisory, SEBI-registered research analyst (Reg. No. INH000006332)
The Nifty closed last week at 18649, with a gain of around 1.60 percent. It gyrated between 18,668 and 18,155 during the week. On the OI (Open Interest) front, short covering built-up was seen in the Nifty as there was a decrease in OI.
On the other hand, Bank Nifty gained about 1.8 percent as it closed the week around 43,272. Its future gyrated between 43,566 to 42,255 and ended the week with gain of about 766 points.
Further diving into the Nifty upcoming weekly expiry, the index immediate resistance stands at 18,600 levels where nearly 48.26 lakh shares is the open interest followed by vital resistance at 19,000 levels where about 78.04 lakh shares is the open interest.
On the lower side immediate support level is at 18,500 where nearly 62 lakh shares is the PE options open interest followed by 18,300 where nearly 72.09 Lakh shares is the PE options open interest.
Looking at the Bank Nifty upcoming Weekly expiry data, on the upside, immediate and vital resistance is at 43,200 where nearly 21.61 lakh shares is the CE open interest, whereas, on the lower side immediate and vital support is at 43,000 where 30.78 lakh shares is the PE open interest. The Maximum OI built-up in case of CE is at 43,000, about 45.63 lakh shares.
India VIX, fear gauge, decreased to 13.33 from 14.39 over the week. Decrease in India VIX has allayed the fear in the market. Further, any uptick in India VIX could start the downward move in Nifty and vice versa.
Looking at the sentimental indicator, the Nifty OI PCR for the week has increased to 1.176 from 0.891. Bank Nifty OIPCR over the week decreased to 0.859 from 0.916 compared to last Friday. Overall data indicates PE writers are more aggressive than CE writers in the Nifty.
Moving further to the weekly contribution of sectors to the Nifty. Private Bank and IT contributed the most on positive side in Nifty i.e. by 27.93 and 51.55 points respectively. Oil & Gas and Metal contributed about 9.68 and 3.52 points respectively on positive side in Nifty. PSU Bank and FMCG contributed 7.19 and 7.18 points on positive side respectively. Auto contributed about 4.37 points negatively in Nifty.
Nifty monthly rollover stands 70.88 percent in November to December series expiry, while Bank Nifty rollover stands at 84.96 percent. Max Financial Services has the highest stock wise rollover of 96.5 percent, followed by Max Financial Services 95.9 percent and Bharat Forge 94.88 percent, while Torrent Power has the lowest rollover of 66.24 percent.
Looking towards the top gainer and loser stocks of the week in the F&O segment. PNB topped by gaining over 18 percent, followed by BHEL 16.7 percent, Escorts 12.3 percent, Indiabulls Housing Finance 11.2 percent. Whereas TVS Motor lost -3.7 percent, ICICI Prudential Life Insurance Company has lost over -3.2 percent, Adani Enterprises lost -2.4 percent over the week.
The upcoming week can be approached with a low-risk strategy like Iron Condor in Nifty.
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This trade idea was published on 28 Nov 2022 by Shubham Agarwal for Quantsapp Advisory, a SEBI-registered research analyst (Reg. No. INH000006332) and an independent proprietorship, not Quantsapp Private Limited. It reflects the market on that date and is not a current recommendation.
First published on 28 Nov 2022: prices, lot sizes and expiries are those of that time. They are illustrations for education only, not investment advice. Derivatives trading carries risk; read all scheme and risk documents before trading.
