Analysis and Game Plan - 8 January 2019

  • I took some bull put spread yesterday and holding on to them right now. Around 20 lots.

  • Market opened with a gap and sold that gap. Gap filling was done. And now we may open flat and whether we will bounce needs to be seen.

  • US market was choppy yesterday and world markets are little green today because of ongoing trade talks.

  • SGX nifty is slightly positive and may give us a positive to flat opening.

  • Data wise, we are range bound on nifty with max pain stagnant at 10800 and pcr slightly positive.

  • On Bank Nifty, pain moved higher yesterday to 27300 and pcr is slightly bullish. Today's activity might be a deciding factor.

  • Option writing was not witnessed on Nifty, but Bank Nifty witnessed high put writing compared to call writing.

  • Indusindbank results are on Wednesday and that might cause some choppy movement in index.

  • From February 11, Nifty weekly options will start trading. It is a welcome step, giving me option to trade in nifty too. Currently I am not keen on holding long monthly positions because of volatility.

  • I will be keenly watching the movement on Bank Nifty today. Broader trend is positive and it is my experience that when broader trend is positive, trend in the same direction in smaller time frame is very strong and swift compared to down side move we witnessed yesterday.

Rohit Katwal

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