Analysis and Trade Plan - 22 January 2019

Yesterday, we tried to break on the upper side on Nifty and Bank Nifty. But there was no strength. Although there was good activity in options on Nifty, but Bank Nifty didn't witness much activity. Although result of Kotak Bank and HDFC Bank were good, but Bank Nifty didn't move. May be it was deliberate. When Bank Nifty hit 27410 initially, I took a bull put spread of -27200, +26900 spread in 5 lots. Later on I added another 5 lots when Bank Nifty was around 27550. I am holding on to that.


Bank Nifty

Technically:

  • We are bullish on daily charts.

  • We are sideways on 2 hourly and 30 minutes chart. We would have been gone bullish with strength if Bank Nifty closed at 27600+.

  • Upper level to watch today is 27580 and lower level is 27330.

  • As mentioned, move yesterday to the upside was swift compared to all the down moves.

Data Analysis:

  • Bank Nifty didn't witness good long addition.

  • Pain is steady at 27500.

  • PCR moved to 1.04 and is constantly increasing. OTM PCR at 1.1 is also getting bullish. With amount of call/put writing, it is right now sideways with bullish bias.

I would like to explore calendar trade options after market settles. I won't be doing analysis on Nifty today as I am travelling. But as I see, it seems bullish overall.


Rohit Katwal




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