September 20, 2020

NIFTY WEEKLY OVERVIEW OF 24TH SEPTEMBER 2020 EXPIRY

By Roy

On a weekly basis, Nifty ended flat. The headline grabber for the week was Nifty Pharma. First, let me go through my previous week’s expiry strategy analysis. I sold 11000 Put option of Nifty at 14.30 and Sold 11800 Call option of Nifty at 7.30. This strangle helped me gain 1.32% on my deployed capital.

Now, let me put forward my views regarding this 24th September expiry.

Nifty

 

The broader range for the Nifty has been 11200 to 11500 for the week gone by. Now the support for the Nifty shifts upward and we may see that Nifty will try to take out 11600 in the days to come. On the downside, 11300 will provide the necessary support. Nifty is being supported by Pharma and IT counters. There is a huge short position in Nifty Bank and till the point, Nifty Bank fires all cylinders, we can’t expect Nifty to go past major resistance on the upside. Nifty bank is hovering around the range of 21000 to 23000.

Nifty Pharma

On the weekly note of 13th August, I mentioned that Nifty found its old love. You can read the post The New Darling.

I mentioned how important was to take out the 12000 levels for Nifty Pharma.  Finally, it did and now it seems the market found its new king for the next bull run.

Pharma is looking strong after many many years. From 2014-2020 Pharma almost did nothing. May be, Pharma and IT will be the leader in the upcoming bull market. This is not a weekly view.

Nifty IT

In the last week’s post here I mentioned how the sky is the limit for Nifty IT. It is trading above all resistances. Never shy away from stocks or sectors which are trading at 52Week highs. The market knows something that we are yet to discover and as a trader, everyone should respect the market. But keep in mind, this view is limited to trading only.

Weekly Expiry Strategy

I have sold 11000 Put option of Nifty at 17.00 and Sold 11800 Call option of Nifty at 9.00. Both for the 24th 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 and am quite aware of the risk associated with selling options. As a prudent measure, 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.