Analysis and Trade Plan - 8 May 2019
I have sold Bear Call Spreads of Nifty and Bank Nifty above 29900 and 11700. Most likely scenario is I won't have to adjust them. Saving me brokerage cost.
India Vix climbed above 26 yesterday.
Dow Jones fell 1.7% yesterday due to US China escalation of trade war.
SGX Nifty is already down by 60 70 points.
Yesterday's gapup was a trap and when it didn't sustain after an hour, I executed more bearish positions. I got rewarded for it.
My current max profit is expected to be around ₹28,000/-.
I will do expiry trading tomorrow to increase this profit.
Crude Oil and Rupee movement are not the cause of concern right now.
For Nifty and Bank Nifty Futures, shorts were added yesterday.
Call writing was visible across all strikes.
PCR is down to the lowest level of .39 for Nifty and Bank Nifty.
It is safe to assume that trend is going to remain down for some time now.
I will wait and watch today through out the day. I might roll down some positions if Market rises for a better premium.
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