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)
Nifty closes the week with a loss of around 1.35%. During the week Nifty gyrated between 18807 - 18313. On the OI (Open Interest) front, short built-up was witnessed in Nifty over the week gone by as there was an increase in OI.
On the other hand, Bank Nifty lost about 1.06% and futures gyrated between 44248 to 43185 last week. Overall, it ended the week with loss of about 464 points.
Further diving into the Nifty upcoming weekly expiry, Nifty immediate resistance stands at 18460 levels where nearly 77.49 lakh shares is the open interest followed by vital resistance at 18600 levels where about 87.16 lakh shares is the open interest.
On the lower side, immediate support level is at 18100 where nearly 44.14 lakh shares is the PE options open interest followed by 18000 where nearly 54.48 lakh shares is the PE options open interest.
Looking at the Bank Nifty upcoming weekly expiry data, on the upside, Bank Nifty immediate and vital resistance is at 43500 where nearly 25.56 lakh shares is the CE open interest, whereas on the lower side immediate and vital support is at 43000, about 19.70 lakh shares, which is the PE open interest.
India VIX, fear gauge, increased to 13.89 on a week to week basis from 13.48. India VIX is trading at low levels. Further, any uptick in India VIX could start the downward move in Nifty and vice versa.
Looking at the sentimental indicator, Nifty OI PCR for the week has increased to 0.807 from 0.76. Bank Nifty OIPCR over the week decreased to 0.758 from 0.972 compared to last Friday. Overall data indicates CE writers are less aggressive than PE writers in Nifty.
Moving further to the weekly contribution of sectors to Nifty, Information Technology and Oil & Gas contributed the most on negative side in Nifty i.e., by 140.10 and 67.75 points, respectively. FMCG and PSU Bank contributed about 43.78 and 7.97 points respectively on the negative side in Nifty. Capital Goods contributed 10.17 points on positive side. NBFC contributed about 10.89 points negatively in Nifty.
Auto and Private Bank contributed negatively with 17.63 and 56.97 points, respectively.
Looking towards the top gainer & loser stocks of the week in the F&O segment, RBL BANK topped by gaining over 8.3%, followed by GAIL 5.9%, IDFC First Bank 5.5%. Whereas Metropolis lost 9.3%, Dr Lal path Lab lost over 8%, and Page Industries lost 7.2% 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 19 Dec 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 19 Dec 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.
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