- It was no brainier on Friday, every pull back is sold into.
- Indices managed to close in Negative.
- Surprisingly Dow futures recovered 1000 points and closed positively on Friday.
- Monthly, Weekly, Daily Pivot is formed lower low formation which is bearish sentiment.
- Huge short were added that brings Max Pain to 29500 level.
- FII were net short holding Long to short positions 32% vs 68% respectively in index futures and Options.
- Closing price is below Daily pivot which is bearish sentiment.
- All depends on how market will open on Monday.
- CPR width widened, which imply there could be side way movement for short term.
- Based on volatility all put premium shoot up significantly.
- VIX up 30% on Friday.
- Key Support and resistance to watch out for 28500 to 28300 area should be strong support down side, upside 30000 which is weekly 50 moving avg.
- only if there is some good news about virus remedy could lift the market (short covering), until then it would be sell on rise rally.
- as OTM Call and Put option premiums are high good for short sellers to collect the premium.
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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