Analysis and Game Plan - 5 December 2018

• Dow tumbled more than 3% yesterday. It is going to affect market opening and we may open gap down.

• SGX Nifty is already down by -64 points.

• Ahead of RBI Monetary policy meet, speculation is not visible.

• Max Pain on Nifty is steady at 10700 with pcr at 1.31 while call and put writing is negligible.

• Max Pain on Bank Nifty came down to 26700 and pcr at 0.82 while call writing was more than put writing.

• Coupled with global rout, we may drift downwards.

Game Plan:

• I am currently holding bear call spread at 27100 and 27300.

• If target is achieved, I will try shifting to a wider call or put calendar today as volatility can increase post RBI meeting.

Here are the updated trades in sheet:

3 December 2018 - 6 December 2018.xlsx

Rohit Katwal