Analysis and Game Plan - 6 December 2018

  • SGX Nifty is down 80 points in early trade suggesting we may open further down today.

  • Nifty witnessed addition of shorts yesterday.

  • Max pain is steady at 10700, pcr came down to 1.24.

  • Call and Put writing was negligible.

  • 30 minute chart has gone bearish.

  • Bank Nifty has addition of shorts.

  • PCR came down to 0.61 and pain moved down to 26600, which is further sign of weakness.

  • Call writing was considerably higher than put writing suggesting that we may drift lower for now.

  • Huawei CFO was arrested on request of US in Canada further escalating the confrontation between US and China is also another bad news for market.

Conclusion: Trading with bearish to sideways bias.

Game Plan:

  • My positions will expire worthless today.

  • I will take some short positions after covering them. If the fall is too intense, then I might not take position at all. As I write, SGX Nifty has plummeted to 98 points.

  • As I told, I am trading with light positions. I may not trade post this expiry till Wednesday as election results are awaited.

  • I have always said, to play the game, we have to be in the game and for that we need to save the capital first. Events will come and go, but market will remain here. Better wait then to trade an uncertain market.

Rohit Katwal
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