Analysis and Trade Plan - 3 October 2019

  • So euphoria over corporate tax cut is over now and trouble with banks is again rattling the markets.

  • On Tuesday, following our markets, dow collapsed by more than 300 points.

  • RBI had to issue a statement on Tuesday to assure depositors that Indian banking system is stable.

  • SGX Nifty was -0.90% on Wednesday.


  • In my analysis on Tuesday, I mentioned that we are bearish and I used the initial jump to get out of my bullish positions. Still I got caught into one of my sold puts.

  • Nifty futures witnessed huge short buildup on Tuesday.

  • PCR is at 0.56 and pain is moving down.

  • Collectively on Options, there was a change of 5 lakh contracts. But put were unwinded to the tune of 22 lakh and calls were written to the tune of 27 lakh.

  • Immediate OTM PCR is also at 0.44

Bank Nifty

  • I am not trading bank nifty these days as it has become too much volatile.

  • There was huge short buildup on Bank Nifty in last two days.

  • Max pain is moving down and PCR is at 0.40 suggesting bearishness.

  • There was clear put unwinding and call writing on all strikes.

I will use the gap down or negative momentum to exit my 11600 CE at profit. I will do some intraday trading but with very less volume and in later part of the day.

Rohit Katwal

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