Analysis and Game Plan - 18 December 2018
US market fell by 1000 points in last two days, despite that we were up yesterday. Today SGX Nifty is down by 50 points.
Long positions are not being added by much volume in Nifty.
Pain is at 10800 and constantly moving up. PCR is bullish at 1.37.
10800 strike witnessed good put writing and 11000 witnessed call unwinding.
Technical trend seems bullish too.
In Bank Nifty, longs are being added.
Pain is also moving up constantly with PCR at 1.4.
Volume of put writing was more than call writing suggesting a bullish bias.
India Vix has dropped significantly to 14.54 which is good for bulls.
Conclusion: Apart from knee jerk reaction, we may trade with sideways to bullish bias.
Currently holding bull put spread of -8 X 26700 & 26500, -8 X 26600 & +8 X 26400.
I might add some put calendar near 26900.