Analysis and Game Plan - 27 December 2018

  • Dow jumped 5 percent yesterday. We may open gapup today. Although it was short covering but will have effect on Indian Markets.

  • We were bearish on 30 minute charts and exactly where daily charts were, we took support. I was monitoring my positions through mobile while travelling, so could not act fast around 26650 and by the time I was able to exit, it was already 26850.

  • Another rule added. If cannot trade from a computer, then don't trade.

Yesterday, I mentioned that max pain did came down, but on daily basis it was forming HH HL pattern which is bullish.
  • PCR has again gone bullish along with pain, and we may see bullish momentum continuing.

  • Yesterday, we saw a lot of call unwinding and put writing at Nifty. On Bank Nifty, call unwinding was huge, but put writing was not that much.

  • Still the trend seems bullish. Trend reversal may reverse if we cross below 26740 which seems highly unlikely for now.

  • I am currently holding put calendars which may not give much profits but in any adverse condition will not add into losses.

Rohit Katwal

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