Analysis and Trade Plan - 24 December 2019
Open Interest continued to buildup on Nifty future. Since it was an indecisive candle, we cannot be certain. Today's movement is crucial for further direction even if it sideways.
Max Pain is steady at 12200 and PCR at 1.56 is bullish.
After many days there was some unwinding at 12200 puts and writing at 12300 calls.
20 lakh of put OI was shed where as only 5 to 6 lakh was added to call OI.
12200 had maximum OI but due to unwinding now 12000 has the max OI.
Since India Vix is down it may be a possibility that lower strikes were not giving any more profits so positions were closed. Its not a definitive signal.
Bank Nifty also saw short buildup which is not clear right now.
Max pain is at 32300 and PCR at 1.18 is slowly coming down now.
Call writing was more on Bank Nifty. Total 9 lakh of fresh calls were written against 3.5 lakh of puts written.
32500 is where max calls are written and 32000 is where the max puts are written. It is going to be the fighting point for this expiry.
I am trading with sideways bias for now.
Yesterday I executed strangles on Nifty and Bank Nifty. Along with that, I executed long positions on Tatasteel, HDFC Bank, Bharti Airtel and Manappuram.
At open, I plan to add Hindustan Unilever and Muthoot Finance to bullish positions.