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.