Analysis and Game Plan - 1 November 2018
I am trading with bullish bias in the coming days now.
10000 has been rejected many times on Nifty.
24500 has been rejected many times on Bank Nifty.
Double Bottom has formed.
We have witnessed a Higher High and Higher Low patern on lower time frame.
Despite being close to spot price, strike of 10000 is witnessing put writing.
Even the closing price has gone above 14 days average VWAP price.
Call writing was at 10900. Put writing was at 10300 - 9800.
Pain is stagnant but PCR has moved significantly.
For Bank Nifty, we have gone bullish.
Put writing has been strong along with pain moving high and pcr moving high.
We have formed Higher High, Higher Low pattern and a double bottom rejection to downside.
Yesterday, down move was because rumour was there that government is discussing implementing section 7 on RBI. Later there came a clarification negating it and market started moving higher.
SGX Nifty as of now is 40 point up.
Dow Jones also close 1% up.
We should open a little gapup.
This is the 6th week when market is trying to close at the same point.
I am trading with bullish bias for expiry trading.
We may have found a trend that we were looking for.
Game Plan -
I will slowly sell my puts sold to release margin for expiry trading. I think we will have a normal opening or a gapup opening and premiums will come down for them.
Here are my open positions -