Analysis and Game Plan - 30 October 2018
Nifty witnessed short covering yesterday.
We are still bearish on daily charts, although smaller time frame charts have gone sideways.
Max OI shifted from 9500-10500 to 10000-11000.
PCR shot up to 1.43 which is bullish.
Bank Nifty witnessed short covering.
We are bearish on daily charts and on smaller time frames, bank nifty is consolidating.
PCR shot up to 1.17 which is bullish.
Call Unwinding was seen at 25000 and 25200, which is again bullish.
We witnessed huge put writing today.
Bank Nifty still requires a day or two for confirmation of bull rally.
Dow Jones was up 1% yesterday and later fell to close at -1%.
SGX Nifty also came down by more than a percent point and not it is down 0.41%.
We may open little down and it may give an opportunity to enter at lower levels on bullish side again.
Rupee is still trading low. Crude has come down which is good for us.
Tension of trade war between US and China is also in the news.
Unless something drastically bad happens, we are bullish for some days.
Bias is sideways to bullish.
Whether it will remain bullish is the question.
So every bullish bet has to be taken with caution and be ready to exit.
We may open little down and may rise after that.
Game Plan -
With down opening, my naked call sell of -2 X 25600 will come in profit.
My bull put spread of -3 X 24300 and +3 X 24100 is already in profit. With down opening, it may come back to previous levels or remain in profit. I don't think I will need to touch it.
I will add 12 lots of bank nifty today.
I will write another bull put spreads between 24800 to 24700 or near that.
6 Lots I will take around 11 am and 6 by the eod.