Analysis and Trade Plan - 9 December 2019
Cumulative Open Interest on Nifty Futures is at all time low right now. Whichever side the direction picks followed by the rise in cumulative open interest will signal the direction we may be taking. Till the time we are trading below 12100 on Nifty Futures, we should assume that further upside is not possible.
Max Pain is at 12000 and is steady for now. PCR has dipped to 0.63 levels after a long time so there may be trend change in the formation.
Vix has been highly violent through out intraday. Occasionally it is rising and falling by 10% within hours which shows the underlying volatility.
12000 strike witnessed an OI addition of 1.7 million followed by 1.2 million on 12100 strike. Both the strikes are with highest OI on call sides also.
Puts of 11700 witnessed a meager addition of 5 lakh which is negligible for now. 11900 has the highest OI Buildup on put side.
On monthly options, 12000/12100 witnessed call writing and highest buildup. On put side 11500 was heavily written giving us the virtual range of 11500-12100 for the month.
Trend for now is sideways to bearish on Nifty with stop at 12100.
Bank Nifty future witnessed long unwinding.
Max Pain is around 31500 and is revolving around 31300-31800 for long time now.
PCR at 0.57 has turned bearish after a long time.
32000 put was written heavily on weekly charts along with strikes 31600-31900. Put writing was comparatively less.
32000 is where max call is written and 31000 is where max puts are written.
On monthly options also 32000 and 31000 were actively written.
Trend might be bearish in short term but I dont see any major downside.
Trend is now sideways on Bank Nifty also.
On news front, we are awaiting Fed Policy announcement on 10-11 December, which will affect us on 12 Dec 2019 i.e. weekly expiry.
I am trading with sideways bias for now.