Concluding 2020 - What holds for last trading week?

What a spectacular and a tough year. We are entering the last trading week of the year. So what can market do till 31st December 2020?


Nifty

  1. Nifty Futures witnessed a long buildup. I mentioned in my tweet before extended holiday that monday we will rally and thats what we witnessed.

  2. PCR at 1.46 is bullish.

  3. Option Chain is bullish with plenty of writing at 13800 PE. For a trigger tomorrow, I am looking at 13800 PE and 13900 CE.

  4. Although, Dow Jones is breaking to upside, so I don't see a downside risk. Still as per my system, bullish above 13900, bearish below 13618 and sideways in between this.

Bank Nifty

  1. Bank Nifty is also bullish with long buildup on futures.

  2. PCR at 1.11 is bullish.

  3. Change in PCR is also bullish.

  4. 31000 has been a long resistance for quite some time now. It is also the call strike with huge buildup. If broken, targets to 31500, 32000 will open.

  5. Post 21 December 2020 fall, we still have not seen a strong bullish recovery or short covering. It should happen tomorrow, or momentum may falter dragging Nifty along with it.

  6. If 31000 is broken tomorrow, one can safely sell puts with minor stoploss. Option Chain is level 4 Bullish.

Premiums for Options of next week were very high today. I don't know what has changed. But would like to wait and re-assess post 31st December 2020.


Happy Trading


Rohit Katwal

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