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.

Rohit Katwal