Analysis and Game Plan - 3 December 2018

• Too early to say how G20 talks between US and China is going to affect the markets.

• As already mentioned, we are going to see lot of volatility due to schedule of events. It just increased with parliamentary vote on brexit on 11 December and OPEC meet on 6 and 7 December.

• Bank Nifty witnessed long unwinding. Collectively for Thursday and Friday, it is net long buildup.

• Max Pain continued to move up at 26700 and pcr is at 1.12 suggesting bullish trend.

• I cannot at this point rule out profit booking at top or retrace.

• India Vix is still high.

• Rupee has come below 69.70 which is good. Crude has also retraced near $62.

• Bank Nifty witnessed more call writing then put writing.

Conclusion: - Market is bullish but we can expect volatility to either side.

Game Plan: -

• I plan to trade light and in small quantities till the end of day.

• Will opt for hedged strategies.

• Planning to execute some diagonal call calendar at higher level based on bid offer difference in next week options.

Rohit Katwal