16 December 2019

Trade Setup for 17.12.2019



  • Both Indices managed to close negatively. but Bank Nifty crossed recent all time high but as soon as it crossed there was selling pressure.
  • Bank Nifty especially rallied for last 3 days it is very much expected that it enters into correction zone. 
  • FII were net buyers (bought approx 760 crs)
  • As per market participation data FIIs unwound future longs net around 6500 but net shorts were added only 864. in futures they are distributed equally (50 % long and 50 % short) 
  • in options they unwound lot of call of options (approx 11200) but they did not buy any put options
  • net 13200 short put contracts were offloaded by FII and 1200 short call contracts.
  • Overall long to short percentage is 44 to 56. 
  • today close was just below the CPR range and on daily basis CPR narrowed. 
  • Both Nifty and Bank Nifty PCR is down compared to yesterday but it is above 1.
  • Max pain was increased by 200 on monthly basis, which is at 31700
  • Open interest for Bank nifty 31500 Put change in OI is 2 lakh contracts could act as major support, upside 32200 and 32500 seen major OI could act as resistance.
  • Considering all these factor, Bank Nifty likely to test 31500 near future if it doesn't hold 31800 - 31880 level.
  • Ahead of GST meeting (18th Dec) market would remain sideways with negative bias. 
  • Planning to do 31500, 32000 and 32500 short straddle on monthly basis and 32000, 31800, 31600 and 32200 short straddle on weekly basis.

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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