Analysis and Game Plan - 26 November 2018
We had a fall on expiry day that I was expecting on previous expiry. So on last expiry I was short and that went wrong. And this expiry I was long, but I was quick to manage it and that made the profit.
I have been vocal in my previous posts, that all is not well for market.
Trend on Nifty has gone sideways on daily and 2 hourly charts and bearish on 30 minutes charts.
PCR is still at 1.25 and pain has not fallen yet.
There was call writing on Nifty and put unwinding, which means we can remain sideways or drift lower. We can touch 10600 before moving towards 10400.
Bank Nifty has also gone sideways on daily and 2 hourly charts. Its bearish on 30 minute charts.
PCR is bearish and call writing was witnessed along with pain moving down.
Bank Nifty is giving bearish bias.
On daily charts, we might be sitting at a support. I might wait till 11:00 am to take a trade.
At any retrace towards 26160, I will take short positions slowly. On reversal I will exit and reverse. Any upside is possible above 26400 only.
Any move towards 26160 and fall below 26000 after will be confirmation for a short term bearishness.
We will have to wait and watch for few hours to see how market develops.
Nobody is talking about it, but margin requirement to sell one lot of nifty has increased considerably in last 3 or 4 trading sessions. I used to pay ₹33000/- for one lot of bank nifty option selling, and not it requires ₹42000/- which is going to affect the quantity and thereby profits. This will make trading in bank nifty difficult for retail option sellers.