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.

Conclusion -

  • 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.

  1. I will add 12 lots of bank nifty today.

  2. I will write another bull put spreads between 24800 to 24700 or near that.

  3. 6 Lots I will take around 11 am and 6 by the eod.

Rohit Katwal

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