September 13, 2020


By Roy

Let me start with the review of the last week. As mentioned in my previous week’s post, Nifty had a neutral week with a positive bias. Nifty was quite happy to trade within a range. I sold 10900 Put option of Nifty at 16.00 and Sold 11800 Call option of Nifty at 9.00. This strangle helped me to gain 1.54% return on my deployed capital.

Now let us see how this week’s expiry looks like.

NiftyWeekly Chart

20 DMA is just preparing for a golden crossover with 200 DMA. Bias in the Nifty is bullish. Nifty is trying to assimilate all the negativity and holding itself above all major support levels. Vix closed at 20.71 on friday. Nifty Option chain for 17th Sep expiry is nicely poised. 23.50 lakh call writers are waiting at 11500 strike of Nifty. 18.50 lakh puts and 19.50 lakh puts are waiting at 11400 strike and 11300 strike respectively. So, it seems the market is well balanced.

Bank Nifty

For me, it is the same old story. Bank Nifty is unable to provide any significant push to NIfty. The nearest support is the lower range of the channel which is at 21000.

Nifty IT

NIfty IT has gone above its major resistance of 18400 and looks set to trade higher. I am bullish on Nifty IT for this coming week. In the coming week, two IT and IT-related companies are going to list on the bourses. Happiest Minds and Route Mobile has garnered huge investor’s interest. Both of these IPOs are expected to have premium listings.

Weekly Expiry Strategy

I have sold 11000 Put option of Nifty at 14.30 and Sold 11800 Call option of Nifty at 7.30. Both for the 17th September 2020 expiry. I sold this strangle on Friday.

Disclaimer: This is not a buy or sell recommendation. I am not a SEBI registered advisor. I sell options and quite aware of the risk associated with it. I have kept surplus funds for any adjustment that may be needed due to evolving market conditions. This post is only information, not a recommendation.