Analysis & Game Plan- 4 January 2019
Dow fell 600 point yesterday.
Effect is not that much visible on SGX Nifty. We may fall post opening.
There are talks that US Parliament has passed bill to end government shutdown.
US-China representatives will be sitting for a talk on 7-8 January.
This is again going to be a volatile and tough week.
Nifty added shorts yesterday.
India Vix again moved to 16.79.
Max pain is slowly moving down and is now at 10800.
120 point range is the new normal for Nifty these days.
Call writing on nifty was huge on 10800/10900/11000.
Bank Nifty on the other hand is resisting fall.
Max pain is moving down along with pcr.
Call writing is more. But given the way it is drifting down, positive news will bring in a swift up-move.
Keeping position overnight is highly dangerous today. There is nothing wrong in India right now, but global uncertainty in US China can cause sleepless nights.
I might take 5 lots in short positions by eod on lower margins depending on market or I might skip it all. It will depend on premiums and current situation.