- As expected Volatile session on expiry day + RBI event
- RBI gave surprise with the news there is no rate cut, everyone was expecting that there will be cut on 25 bps.
- This triggered the selling pressure from today's high.
- As soon as this news came out with in minutes Bank nifty fell from 32080 to 31750 .
- Bulls did not hold 32000 level.
- VIX shot up 8% on closing basis.
- Today's close is below to the daily and weekly CPR range. which indicates bearish sentiment ahead.
- Next Week expiry CPR and Daily CPR narrowed compared to last week and today, indicates trending days ahead. (could be down side / upside)
- FIIs net buyers they bought 650 crs approx.
- As per the market participation data, FIIs continue to short the index future (net 2310 contracts), unwinding seen in all longs (call / put) and shorts (call / put) net net basis. but overall there are still more shorts than longs.
- In terms of percentages overall contracts held by FII, short side 57% and long side 43% this it self is a signal that FIIs are in bearish mode.
- Bank nifty likely to trade between 31400 to 32000 tomorrow, Planning to do the short straddle 31200, 31400, 31500, 31800, 32000 on weekly expiry 12 dec. monthly basis planning to do the 31000, 31500, 32000 short straddle.
- Max Pain level down by 100 points (31800) on weekly basis and monthly basis there is no change.
- PCR also down in both indices.
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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