Analysis and Game Plan - 24 December 2018
With US Government shutting down, the news is bad. But it cannot remain shut for ever and the day there is a positive development will call for a technical bounce.
On Thursday, we witnessed long unwinding, and if we consider next month futures, there was short buildup on both nifty and bank nifty.
Max pain for Nifty is steady at 10800. Any further down move and max pain will move down. For Bank Nifty, max pain is already down.
PCR suggests sideways bias for Nifty and bearishness for Bank Nifty.
Call writing was visible on Nifty and Bank Nifty for past two days.
Technically, we are bearish on 2 hour and 30 minutes chart.
On daily charts, we are hinging at support.
India Vix has again moved above 16.
Rupee has stabilized and crude is near 54 which is good for us.
Due to holiday season in many markets, I am not expecting much volatile movements right now.
Tomorrow, market is closed, so premiums will shed by evening or Wednesday morning.
Conclusion: Till this expiry, trading with bearish to sideways bias.
Game Plan: Market is moving down, planning to roll down, bear call spread with more lots.