Analysis and Trade Plan - 17 December 2019
On Friday I went bullish but I was not sure as data comes end of day, so I did a put calendar for better protection. I executed -11950 Put and +11800 Put of 26 Dec 2019.
Yesterday we were bearish but slightly and there was not much momentum to downside, so I wrote a bull put spread in Bank Nifty of -31500 Put, +31200 Put.
At end of day, data came bad.
After 5 days of continued buildup, we witnessed long unwinding.
We are still bullish on Daily charts and sideways on 30 minute chart. Hence bullish right now.
Max Pain is steady at 12000.
On calls side 34 lakh fresh contracts were added. Puts of 12000 11900 witnessed put winding. Combined with writing at 12100, it is not a good sign. For markets to remain bullish, we need fresh put writing at 12000 levels.
12000 holds the maximum OI on puts and 12100 maximum OI on calls. Break of either with unwinding will cause a rally to either side.
FII DII data came to net sell of -68 crore with DII sellers after a long time.
India vix at 13.42 is still low. I will assume a bullish trend, unless there is a major trend shift.
Bank Nifty is still bullish on Daily and 30 minutes chart.
31560-31660 should act as a strong support zone.
32100 is proving to be a resistance.
Option writing was equal on call and put side on Bank Nifty. Calls were slightly more written.
Monthly options also suggest that we are into a sideways zone and not expecting any bigger movement as all strikes of multiple 500 are extensively written.
For now I am trading with sideways to bullish bias.
Dow Jones touched all time high yesterday after US China trade tensions eased and that should help the sentiment.
SGX Nifty in early trade is positive with 30 points up.
Hindunilvr can be shorted with a stoploss of 2000.
Techm can be bought with a stoploss of 760.
I prefer taking positions based on futures in options.
INDIGO - 1300 Put buy.