04 December 2019

Trade Setup for 05.12.2019



  • What a volatile session today, indices managed to close in Green ahead of RBI event.
  • Bank nifty outperformed today by short covering rally.
  • as expected, Bank Nifty took support at partial Virgin CPR level (31470 to 31440)and from there bounced back.
  • FIIs are in selling mode, they are net sellers approx 780 crs.
  • As per the market participation data, FII shorting index futures, they bought more calls than puts and shorting more puts then calls. 
  • Max Pain moved up by 100 points suggests.
  • Nifty and Bank Nifty PCR increased compared to previous day
  • Highest OI added at 32000, 32200 and 32500 will act as resistance and 31800, 31500 could act as support.
  • Tomorrow is weekly expiry and RBI MPC decision and expecting tomorrow one more volatile session.
  • Bank Nifty likely to test recent highs 32155 this could first resistance, sustaining this level we could see up move till 32350 - 32400.
  • expecting bank nifty likely to open between 32050 - 32000 level, and likely to be with in the range between 32250 and 31800 levels during the day.
  • planning to do the short strangle 31600, 31800, 32000, 32200 weekly and 31500, 32000, 32500 on monthly expiry. 
Disclaimer: I am not a SEBI register advisior, The above trade setup is purely based on my own study and analysis. i am not giving suggestions to buy / sell specific options. please consult your financial advisors / do the due diligence before taking any trade.

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