Analysis and Trade Plan - 17 December 2019

  • On Friday I went bullish but I was not sure as data comes end of day, so I did a put calendar for better protection. I executed -11950 Put and +11800 Put of 26 Dec 2019.

  • Yesterday we were bearish but slightly and there was not much momentum to downside, so I wrote a bull put spread in Bank Nifty of -31500 Put, +31200 Put.

  • At end of day, data came bad.

  • After 5 days of continued buildup, we witnessed long unwinding.

  • We are still bullish on Daily charts and sideways on 30 minute chart. Hence bullish right now.

  • Max Pain is steady at 12000.

  • On calls side 34 lakh fresh contracts were added. Puts of 12000 11900 witnessed put winding. Combined with writing at 12100, it is not a good sign. For markets to remain bullish, we need fresh put writing at 12000 levels.

  • 12000 holds the maximum OI on puts and 12100 maximum OI on calls. Break of either with unwinding will cause a rally to either side.

  • FII DII data came to net sell of -68 crore with DII sellers after a long time.

  • India vix at 13.42 is still low. I will assume a bullish trend, unless there is a major trend shift.

  • Bank Nifty is still bullish on Daily and 30 minutes chart.

  • 31560-31660 should act as a strong support zone.

  • 32100 is proving to be a resistance.

  • Option writing was equal on call and put side on Bank Nifty. Calls were slightly more written.

  • Monthly options also suggest that we are into a sideways zone and not expecting any bigger movement as all strikes of multiple 500 are extensively written.

  • For now I am trading with sideways to bullish bias.

  • Dow Jones touched all time high yesterday after US China trade tensions eased and that should help the sentiment.

  • SGX Nifty in early trade is positive with 30 points up.

Stock Futures

  • Hindunilvr can be shorted with a stoploss of 2000.

  • Techm can be bought with a stoploss of 760.

  • I prefer taking positions based on futures in options.

Option Runners

  • INDIGO - 1300 Put buy.

Rohit Katwal

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