Analysis and Game Plan - 03 January 2019
I think we have achieved a temporary top for now and volatility will surge in coming days.
Dow jones closed positive yesterday after opening 350 points down.
Despite fall in Indian Markets, sgx nifty was again up yesterday at around 10900.
This is the longest streak of volatility and an uncertainty I have seen. I haven't witnessed this type of volatility in 2012, 2014, 2016 when things were bad.
US Senate will meet today post our markets for resolution on Government shutdown.
On daily and 2 hourly charts, we are in sideways direction. On 30 minute charts, we are bearish.
Max Pain for Nifty and Bank Nifty moved down. PCR for Nifty is still bullish, whereas bank nifty has gone bearish with huge call writing yesterday.
But put unwinding at 27000 was not huge and it still has the max oi among puts. 27500 has the maximum oi in calls.
I am currently holding a bear call spread which I will cover in and around market opening to lower my losses as market is going to be unpredictable today.
Going forward, I am going to lower my margins of profit to beat the uncertainty. Going 1000 point here and there has been a new normal for Bank Nifty and at the end it settles at the same point it started by giving whipsaws.
I am expecting a gap down or a normal opening and then we may rise.