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