Analysis and Game Plan - 3 December 2018

  • Too early to say how G20 talks between US and China is going to affect the markets.

  • As already mentioned, we are going to see lot of volatility due to schedule of events. It just increased with parliamentary vote on brexit on 11 December and OPEC meet on 6 and 7 December.

  • Bank Nifty witnessed long unwinding. Collectively for Thursday and Friday, it is net long buildup.

  • Max Pain continued to move up at 26700 and pcr is at 1.12 suggesting bullish trend.

  • I cannot at this point rule out profit booking at top or retrace.

  • India Vix is still high.

  • Rupee has come below 69.70 which is good. Crude has also retraced near $62.

  • Bank Nifty witnessed more call writing then put writing.

Conclusion: - Market is bullish but we can expect volatility to either side.

Game Plan: -

  • I plan to trade light and in small quantities till the end of day.

  • Will opt for hedged strategies.

  • Planning to execute some diagonal call calendar at higher level based on bid offer difference in next week options.

Rohit Katwal

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