Analysis and Game Plan - 18 December 2018

  • US market fell by 1000 points in last two days, despite that we were up yesterday. Today SGX Nifty is down by 50 points.

  • Long positions are not being added by much volume in Nifty.

  • Pain is at 10800 and constantly moving up. PCR is bullish at 1.37.

  • 10800 strike witnessed good put writing and 11000 witnessed call unwinding.

  • Technical trend seems bullish too.

  • In Bank Nifty, longs are being added.

  • Pain is also moving up constantly with PCR at 1.4.

  • Volume of put writing was more than call writing suggesting a bullish bias.

  • India Vix has dropped significantly to 14.54 which is good for bulls.

Conclusion: Apart from knee jerk reaction, we may trade with sideways to bullish bias.

Game Plan:

  • Currently holding bull put spread of -8 X 26700 & 26500, -8 X 26600 & +8 X 26400.

  • I might add some put calendar near 26900.

Rohit Katwal

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