Analysis and Trade Plan - 23 December 2019

  • I took a strangle on Nifty on Friday. In the last moments I decided not to ride any overnight positions. At such tops, markets can swing any side on opening. The days movement was also sideways throughout.

  • On Nifty, we are bullish on Daily Charts as well as Half-Hourly Charts.

  • Support on futures lies at 12200 zone. On spot we can see 12090-12131 act as a support zone.

  • Resistance is seen at 12300.

  • Option Chain is bullish. Max call OI stands at 12300 and 12400 strikes. There is max OI at 12500 but since the premium is less, it might lose focus and positions might shift to lower strikes.

  • 12000 may also lose focus and start shifting higher.

  • India Vix is at record lows of 12.32 right now

  • PCR at 1.75 is highly bullish and Max Pain at 12200 is also moving up.

  • FIIs DIIs data was tepid. Net figure came at 53 crore with FIIs net buyers and DIIs net sellers.

  • I am trading with bullish bias on Nifty.

  • Bank Nifty is bullish on Daily and Half-Hourly charts.

  • Support lies at 31900 levels and resistance at 31400 level.

  • While Nifty has remained strong, Bank Nifty has not gone up with strong momentum.

  • It may start now as I am getting bullish signals on HDFC Bank. ICICI Bank is already strong.

  • Option Chain is bullish. Total 17 Lakh puts were added against 10 lakh calls.

  • 32000 had a major put writing with max Put OI. 32500 has major call OI with max OI.

  • PCR at 1.3 and max pain moving up at 32300 is bullish.

  • I am trading with Bullish bias on Bank Nifty.

Stock Selection:

Following are the stocks that I have selected for positional bullish or bearish positions.

HDFC Bank - Bullish

Bharti Airtel - Bullish

Tata Steel - Bullish

Kotak Bank -Bearish below 1690

Indigo - Bearish below 1274

Hindustan Unilever - Bearish below 1920.

I will take positions on these stocks through option spreads.

Rohit Katwal

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