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.

Rohit Katwal



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