Analysis and Trade Plan - 21 May 2019

  • I am trading with very less quantities right now. Negligible quantity for me. I have taken positions which are 1500 points far away from spot price. I am keeping cash free for any adverse movement. Need money to fight uncertainty and adjustments.

  • US-Trade war escalated to next level with Google breaking up ties with Huawei. It might have little impact on us, because focus is clearly on exit polls and final results.

  • Yesterday, India Vix crashed by almost 30% in the morning. I was expecting India Vix to crash post elections. That is why I decided to take a bullish trade.

  • Data wise, we are bullish on Nifty and Bank Nifty.

  • Max Pain has moved up significantly.

  • PCR for Bank Nifty is bullish and for Nifty it is still sideways.

  • One reason for less Open Interest in options is due to high premiums. I mean near ITM premiums are at prices which are not even seen in monthly options.

  • If there is any divergence of results from what exit polls are predicting, market can take a u-turn so be cautious.

  • The strategies that I am doing are all on my personal account.

  • With bullish bias, I am thinking of doing some put calendars today.

Rohit Katwal

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