Analysis and Game Plan - 27 November 2018

  • Yesterday's bull move was because of governments capital infusion plan into PSB's.

  • We negated the bear move on 30 minute charts and came in sync with bullish move on 30, 2 hourly and daily charts.

  • Part of my decision to immediately change direction to bullish attributed to fact that we were sideways on daily and 2 hourly charts and bearish on 30 minute charts, but daily charts were on crucial retrace support, bounce from that point along with breaking days high gave a bullish signal.

  • Next news in focus will be G20 meeting between US and China, but that is on Friday and will have bearing on next weekly expiry.

  • Dow Jones closed strong.

  • SGX Nifty is up by 50 points.

  • Nifty bounced from support. Future OI added longs along with put writing at 10500/10600 and call unwinding across all strikes. Pain is steady and PCR bullish.

  • Bank Nifty witnessed put writing and very little call writing. PCR and Pain are bullish.

Conclusion: Trend is bullish for Bank Nifty. For Nifty, trend is getting bullish.

Game Plan:

  • I don't have to alter my bull put spread taken yesterday with sightly extra naked calls.

  • I am expecting a gap-up.

  • I might add bull put spread depending upon the opening.

  • I might add a put calendar, if market has risen significantly.

Rohit Katwal

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