Analysis and Trade Plan - 18 December 2019

Nifty future witnessed long buildup. We hit a new all time high. Down move and buildup on Monday was fake. It also shows how big players fake the market data.
Max Pain moved up to 12100 which is bullish. PCR at 1.65 is extremely bullish right now.
India Vix eased further to 12.62, down 6%. Again a sign that there is not much fear in the market right now.
FIIs were net buyer of 1248 crore and DIIs were net seller of 908 crore giving a net buy for the day.
Monthly Max pain moved up to 12100 after a long time which is a bullish signal again.
On weekly options 19 Lakh Calls were shed. 37 lakh OI was added to puts.
From 12000-12150, 35 Lakh OI was added. 12100 calls saw the max unwinding of 10 lakh.
12100 happens to be the strike with Max Call and Put strikes right now. A little more shedding on 12100 and then Max OI will shift to 12200.
Monthly data is more interesting. 12000 happens to be strike with max calls and puts. Apparently 12100 calls saw unwinding of 5 lakh and 12000 calls only witnessed 1 lakh OI unwinding. So 12000 straddle must exist in system right now. 12000 to 12150 puts added OI.
Bank Nifty witnessed long buildup but volume was not much.
Max Pain on 32100 is also moving up. PCR at 1.19 is bullish.
Option Data on Bank Nifty weekly is also bullish.
SGX Nifty is flat right now.
Overall I am trading with bullish bias on #Nifty and #BankNifty
I might cut my short positions on Nifty 11250 call and Bank Nifty 32700 Call if necessary.

Stock Picks

I am bullish on IGL and Bharti Airtel for this expiry. Credit spreads can be initiated on them.
In Option Buying, I am looking to buy #Tatamotors 180 CE, #Hindalco 215 CE and #Canbk 230 CE. I will use my intraday filters to time the entry.

Rohit Katwal

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