Analysis and Game Plan - 9 November 2018
Dow Jones shot more that 2.5 percent after US Mid Term Elections.
Crude has entered bearish phase which is good and bad in its own way.
I am still wondering if we have made a temporary high for Nifty and Bank Nifty.
India Vix seems to be cooling. Still needs 2 or 3 days for better judgement.
On Mahurat Trading, I took a single trade at opening for a little profit on auspicious day. Details are in link 9 November 2018 - 15 November 2018.xlsx
I was not sure of the direction, so I refrained from holding it.
Trend on SGX Nifty suggest we may open slightly negative.
There was long buildup on futures and call unwinding at 10700. But on Tuesday we witnessed call writing at 10700 more.
Nifty pain is steady while pcr is bullish.
Ban Nifty on weekly expiry witnessed long unwinding. Compared to it, long buildp on mahurat trading was nothing.
But pain has started moving up and PCR is neutral.
On Expiry, there was call writing more than put writing on Bank Nifty.
Major news right now is faceoff between Government and RBI which may remain headlines till 19 November 2018 and can cause little volatility.
Conclusion - Bullish bias till Bank Nifty is above 25420.
Game Plan -
I plan to take 7 lots today for 35 to 37 points.
If market opens gapup, I will write a bull put spread.
If market opens gapdown below 25500 or goes below 25500 after opening, I will write a bear call spread.
If market open flats and take support and resists downside at 25500, I will write a put calender. Once above 25800, I will write a bull put spread. If it breaks down, then will exit put calender and write a bear call spread.