Nifty Trading Strategy for the Week Ahead 📝✅
Nifty has recovered strongly from the 22,700–22,800 zone up to around 23,350. Momentum on the 1H chart is still pointing upward (higher highs and higher lows since early March).
Max Pain: ⚠
The current Max Pain appears around 23,200–23,300.
Price (≈23,350) is slightly above Max Pain. Often, option sellers benefit if the index settles near the Max Pain level by expiry; however, in a strong uptrend, price can remain above it.
Open Interest (OI) & Change in OI:📊
Significant Put OI (and additions) around 23,200 and 23,000. This often implies a support zone.
Noticeable Call OI at or above 23,500, which could act as a short-term resistance if price approaches that region.
Put–Call Ratio (PCR): 📈📉
PCR is around 1.05–1.10, suggesting mildly bullish sentiment.
A PCR > 1 usually means more puts are being sold or more call positions are being closed, implying the market is not aggressively bearish. However, an extremely high PCR can also hint at an overbought market, so it’s good to be cautious.
2. Possible Strategy 🧠
Given the uptrend and the supportive OI near 23,200, a buy-on-dips approach looks reasonable. However, be mindful of the overhead call OI around 23,500.
Entry:💡
Buy (go long) near 23,300–23,280
Rationale: You’re buying close to the short-term support area (23,200–23,250) indicated by strong Put OI and near the Max Pain region.
Target: 🎯
First Target: 23,450–23,500
Rationale: This zone is just below the big Call OI cluster, which could be the first significant resistance. Lock in partial profits here if the market moves up quickly.
2nd Target (if momentum is strong): 23,600 🎯🎯
Only consider holding for a higher target if you see follow-through buying and a breach of 23,500 on good volumes.
Stop Loss: 🔴
Stop Loss: 23,200 (on a closing basis if you are trading intraday to multi-day)
Rationale: A break below 23,200 would indicate that sellers are gaining control and that the put-writers’ support is failing.
Nifty has recovered strongly from the 22,700–22,800 zone up to around 23,350. Momentum on the 1H chart is still pointing upward (higher highs and higher lows since early March).
Max Pain: ⚠
The current Max Pain appears around 23,200–23,300.
Price (≈23,350) is slightly above Max Pain. Often, option sellers benefit if the index settles near the Max Pain level by expiry; however, in a strong uptrend, price can remain above it.
Open Interest (OI) & Change in OI:📊
Significant Put OI (and additions) around 23,200 and 23,000. This often implies a support zone.
Noticeable Call OI at or above 23,500, which could act as a short-term resistance if price approaches that region.
Put–Call Ratio (PCR): 📈📉
PCR is around 1.05–1.10, suggesting mildly bullish sentiment.
A PCR > 1 usually means more puts are being sold or more call positions are being closed, implying the market is not aggressively bearish. However, an extremely high PCR can also hint at an overbought market, so it’s good to be cautious.
2. Possible Strategy 🧠
Given the uptrend and the supportive OI near 23,200, a buy-on-dips approach looks reasonable. However, be mindful of the overhead call OI around 23,500.
Entry:💡
Buy (go long) near 23,300–23,280
Rationale: You’re buying close to the short-term support area (23,200–23,250) indicated by strong Put OI and near the Max Pain region.
Target: 🎯
First Target: 23,450–23,500
Rationale: This zone is just below the big Call OI cluster, which could be the first significant resistance. Lock in partial profits here if the market moves up quickly.
2nd Target (if momentum is strong): 23,600 🎯🎯
Only consider holding for a higher target if you see follow-through buying and a breach of 23,500 on good volumes.
Stop Loss: 🔴
Stop Loss: 23,200 (on a closing basis if you are trading intraday to multi-day)
Rationale: A break below 23,200 would indicate that sellers are gaining control and that the put-writers’ support is failing.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.